No journal entry is necessary Question 44 2 pts Which of the following is considered (either added or subtracted) in determining the denominator (retail amount of the calculation of the cost-to-retail ratio under the conventional retail inventory method? 1. Abnormal spoilage IL Purchase discounts Only Both and li Neither inor 11 Only MacBook Pro A debit to Loss Due to Decline of Inventory to Net Realizable Value for $207.000 A credit to Allowance to Reduce Inventory to Net Realizable Value for $26,000 Question 43 2 pts In 2019 the Manufacturing Company signed a contract with a supplier to purchase raw materials in 2020 for $565,000. At the December 31 2019, the market price for these raw materials was $600,000. What effect, if any, would the market price at December 31, 2019 have on the Manufacturing Company's December 31, 2019 financial statements? A current asset of $35.000 would be recorded A current asset of $565,000 would be recorded A current asset of $600,000 would be recorded No journal entry is necessary Qumran 14 MacBook Pro Question 42 2 pts The Nature Company, which uses the first in, first-out costing method, began operations in 2019. The Nature Company calculatsite Inventory at lower-of-cost-or net realizable value on the total basis. At December 31, 2019, the Nature Company had the following total! Inventory at cost and total inventory at net realizable value: Total Inventory at Cost Total Inventory at Net Realizable Value 12/31/19 - $233,000 $207,000 Assume the Nature Company records its inventory at cost and uses an allowance account for the year end adjustment to net realizable value on a total basis. The Nature Company's adjusting journal entry, if any at December 31, 2019 related to the inventory would include: Adebit to Allowance to Reduce Inventory to Net Realizable Value for $26,000 Acredit to Loss Due to Decline of Inventory to Net Realizable Value for $207,000 Adebit to Loss Due to Decline of Inventory to Net Realizable Value for $207.000 Acredit to Allowance to Reduce Inventory to Net Realizable Value for $26,000 2 pts Question 43 MacBook Pro