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The J. Love Company uses a periodic inventory accounting system and values its inventory by using the lower of cost or market rule. The allowance method is used in applying the lower of cost or market rule. The company adjusts and closes its books annually on December 31. Below are the cost and market values of the company's yearend inventories for a threeyear period: Date Cost Market December 31, 2014 $70,00 $70,00 0 0 December 31, 2015 56,000 46,000 December 31, 2016 64,000 58,000 Which of the following journal entries would be correct as of December 31, 2015, to apply the lower of cost or market rule to the valuation of inventory? a. Inventory 46,000 Income Summary 46,000 b. Cost of Goods Sold 10,000 Allowance to Reduce Inventory to Market 10,000 c. Cost of Goods Sold 10,000 Inventory 10,000 d. Loss Due to Market Valuation 10,000 Allowance to Reduce Inventory to Market 10,000 Leslie, Ltd. used the LIFO retail inventory method to determine its ending inventory. The accounting records for the company contained the following relevant information: Cost Net purchases Sales Beginning inventory Retail $48,00 $79,00 0 0 91,000 12,000 25,000 Net markups 5,000 Net markdowns 4,000 What is the cost of the ending inventory? a. $6,720 b. $7,980 c. $7,700 d. $8,400