Use the following information to complete Questions 32 and 33. Madison Corp. begins the month with an inventory balance of $1,500 and completed the following transactions for the month, listed in chronological order. Madison uses the gross method to record purchase discounts. 32. What is Madison's month-end inventory balance under a perpetual inventory system? A) $2,209 B) $2,039 C) $2,129 D) $2,189 E) $1,979 33. What is Madison's gross margin for the month under a perpetual inventory system? A) $180 B) $160 C) $420 D) $69 E) $400 37. Sea Gull, Inc, uses FIFO for internal purposes and LIFO for income tax and external reporting purposes. At the end of the year, the inventory records of Sea Gull, Inc. include the following items. The entry to adjust the inventory allowance to reduce FIFO inventory to LIFO inventory at the end of 2021 would include what amount? A) A debit to cost of goods sold for $60,000. B) A credit to cost of goods sold for $60,000. C) A debit to cost of goods sold for $15,000. D) A credit to cost of goods sold for $15,000 18. Waltham Distribution Company has measured its December 31,2020 , inventory on a FIFO basis at $200,000. Information pertaining to that inventory follows. At December 31,2020 , what is the loss that Waltham should recognize? Assume no previously recorded inventory losses. A) $8,000 B) $10,000 C) $2,000 D) \$-0