Negredo Medical Supplies uses UFO cost flow assumption and has developed the following data for its products Surgical Supplies Surgical Equipment 400 Number of units in inventory 17.00 3451 205 255 17 Per unit Selling Price Cost Replacement cost Cost to sell Normal gross profit ratio 325 64 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 increase libices by 3700 0 0 reduce equity by $3700 0 reduce equity by $31,00 o reduce assets by $31.000 0