Negredo Medical Supplies uses LIFO cost flow assumption and has developed the following data for its products: Surgical Equipment 400 Surgical Supplies 370 Number of units in inventory Per unit Selling Price Cost Replacement cost Cost to sell Normal gross proftratio 345 255 325 205 1 75 30 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: Multiple Choice reduce equity by $3.700 reduce equity by $31000 increase abilities by $3,700 O reduce assets by 1000