Rashford Medical Supplies uses LIFO cost flow assumption and has developed the following data for its products: Surgical Equipment Surgical Supplies Number of units in inventory 530 620 Per unit: Selling price 425 250 Cost 335 247 Replacement cost 345 243 Cost to sell 42 44 Normal gross profit ratio 40% 45% Normal gross profit ratio is expressed as a percentage of selling price. Rashford adjusts an allowance account at year-end to record net realizable value adjustments to its inventory. All products are reported at cost at the beginning of the year. The entry at year-end will:

Rashford Medical Supplies uses LIFO cost flow assumption and has developed the following data for its products:

	Surgical Equipment	Surgical Supplies
Number of units in inventory	530	620
Per unit:
Selling price	425	250
Cost	335	247
Replacement cost	345	243
Cost to sell	42	44
Normal gross profit ratio	40%	45%

Normal gross profit ratio is expressed as a percentage of selling price. Rashford adjusts an allowance account at year-end to record net realizable value adjustments to its inventory. All products are reported at cost at the beginning of the year. The entry at year-end will:

Rashford Medical Supplies uses LIFO cost flow assumption and has developed the following data for its products:

	Surgical Equipment	Surgical Supplies
Number of units in inventory	530	620
Per unit:
Selling price	425	250
Cost	335	247
Replacement cost	345	243
Cost to sell	42	44
Normal gross profit ratio	40%	45%

Normal gross profit ratio is expressed as a percentage of selling price. Rashford adjusts an allowance account at year-end to record net realizable value adjustments to its inventory. All products are reported at cost at the beginning of the year. The entry at year-end will:

Multiple Choice

• reduce equity by $25,420

• increase liabilities by $64,660

• reduce equity by $95,170

• reduce assets by $95,170