The J. Love Company uses a periodic inventory accounting system and values its inventory by using the lower of cost or market rule. The allowance method is used in applying the lower of cost or market rule. The company adjusts and closes its books annually on December 31. Below are the cost and market values of the company's year-end inventories for a three-year period:

Date	Cost	Market
December 31, 2016	$70,000	$70,000
December 31, 2017	56,000	46,000
December 31, 2018	64,000	58,000

Refer to Exhibit 8-3. Which of the following journal entries would be correct as of December 31, 2018, to apply the lower of cost or market rule?

Allowance to Reduce Inventory to Market		4,000
	Loss Recovery Due to Market Valuation			4,000

Inventory		58,000
	Income Summary			58,000

Cost of Goods Sold		6,000
	Allowance to Reduce Inventory to Market			6,000

Loss Due to Market Valuation		6,000
	Allowance to Reduce Inventory to Market			6,000