Problem III: (12 pts) Gordy Corp. uses an inventory cost flow assumption which requires the lower-of- cost-or-market (LCM) method to be used. It has 1,000 units of Product #488 in its year-end inventory at 12/31/19. These units have an original cost of $200 each. A lower-of-cost-or-market analysis shows the designated market value of these units is $185 each. A. Assuming Gordy uses the direct method to adjust its inventory to the lower-of-cost-or-market, prepare the year-end adjusting entry to reflect the application of the LCM method. Date Debit Credit 12/31/19 B. Assume, instead, that Gordy uses the indirect method to adjust its inventory to the lower-of-cost-or- market and also assume the "Allowance to Reduce Inventory to Market" account has a beginning normal account balance of $6,000. Prepare the year-end adjusting entry to reflect the application of the LCM method. Debit Credit Date 12/31/19