iven the following information for the Raquel Company:

Date	Cost	Market
December 31, 2016	$500	$500
December 31, 2017	700	700
December 31, 2018	800	730

Under the periodic system, if the direct method of recording lower of cost or market is in use, which December 31, 2018 entry is correct?

Inventory	70
	Cost of Goods Sold			70

Cost of Goods Sold	70
	Inventory			70

Loss Due to Market Valuation	70
	Allowance to Reduce Inventory to Market			70

Cost of Goods Sold	70
	Allowance to Reduce Inventory to Market			70