Use the following information for problems #47-48. Applying LCM, NeCo determines that as of December 31, 20X3, mer- chandise that originally cost $46,300 is now $43,500 at market. NeCo determines that the loss is not material enough to warrant disclosure as a line item on its income statement. Therefore it should.. 47. a. make no entry but disclose the loss in a note on the financial statements. b. make no entry and make no disclosure c. make an entry to reduce retained earnings. d. make an entry to increase cost of goods sold. Early in 20X4, the market value of NeCo's inventory unexpectedly increases to $47,500. If the original credit to write-down inventory was to the Inventory account, NeCo should. . . 48. a. recognize a $4,000 gain. b. recognize a $2,800 gain. c. make no entry but disclose the loss in a note accompanying the fi- nancial statements. d. make no entry and make no disclosure