The following information is available for Anselmo Corporation's inventories: December 31, 2019: At cost: $585,000 At lower of cost and net realizable value (NRV): $525.000 December 31, 2020: At cost: $780,000 At lower of cost and net realizable value (NRV): $740,000 Anselmo uses a periodic inventory system and an allowance account to adjust its inventory from cost to the lower of cost and NRV. Anselmo's 2020 journal entry to adjust its inventory from cost to the lower of cost and net realizable value (NRV) will include a 1) debit of $40.000170 Loss on Inventory Due to Decline in NRV. inventory from cost to the lower of cost and NRV. Anselmo's 2020 journal entry to adjust its inventory from cost to the lower of cost and net realizable value (NRV) will include a 1) debit of $40,000 to Loss on Inventory Due to Decline in NRV. 2) credit of $40,000 to Recovery of Loss Due to Decline in Inventory. O 3) debit of $20,000 to Allowance to Reduce Inventory to NRV. 4) debit of $40,000 to Allowance to Reduce Inventory to NRV. 5) debit of $20,000 to Loss on Inventory Due to Decline in NRV