Negredo Medical Supplies uses LIFO cost flow assumption and has developed the following data for its products: Surgical Equipment Surgical Supplies Number of units in inventory 400 370 Per unit: Selling Price 345 205 Cost 255 175 Replacement cost 325 165 Cost to sell 64 22 Normal gross profit ratio 30% 35% Normal gross profit ratio is expressed as a percentage of selling price. Negredo adjusts an allowance account at year-end to record net realizable value adjustments to its inventory. All products are reported at cost at the beginning of the year. The entry at year-end will: