Given the Following Information for the Raquel Company If the Allowance Method of Recording Lower of Cost or Market}

Given the following information for the Raquel Company:
$\begin{array}{c}\begin{array}{l}\underline{\text { Market} } \\\$ 500 \\650 \\730 \end{array}\begin{array}{lll}\underline{\text { Cost}}\\ \$ 500 \\700\\800\end{array}\begin{array}{lll}\underline{\text { Date}}\\\text {December 31,2014}\\\text {December 31, 2015}\\ \text { December31,2016} \end{array}\end{array}$
If the allowance method of recording lower of cost or market is in use, which December 31, 2016, entry is correct?

A) Loss Due to Market Valuation 20
Allowance to Reduce Inventory to Market 20

B) Inventory 730
Income Summary 730

C) Loss Due to Market Valuation 70
Allowance to Reduce Inventory to Market 70

D) Allowance to Reduce Inventory to Market 800
Income Summary 800