Question 37 3 pts Raquel Company uses FIFO and reports the following: Date Cost Market December 31, 2016 $500 $500 December 31, 2017 700 700 December 31, 2018 800 730 Under the periodic system, if the direct method of recording lower of cost or market is in use, which December 31, 2018 entry is correct? Debit Inventory 70: Credit Cost of Goods Sold 70 Debit Loss Due to Market Valuation 70; Credit Allowance to Reduce Inventory to Market 70 Debit Cost of Goods Sold 70: Credit Allowance to Reduce Inventory to Market 70 Debit Cost of Goods Sold 70: Credit Inventory 70