Problem III: (12 pts) Najette Corp. uses the lower-of-cost-or-market (LCM) inventory valuation method. On 12/31/20, it has 2,000 units of a certain product in its year-end inventory. These units have an original cost of $100 cach. A lower-of-cost-or-market analysis shows that the designated market value of these units is $70 each. A. Assuming Najette 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. Debit Credit Date 12/31/20 B. Assume, instead, that Najette 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 $20,000. Prepare the year-end adjusting entry to reflect the application of the LCM method Debit Credit Date 12/31/20