$2.$ Complete the statements below that explain any differences in inventory valuation and income between the two methods.

The two methods produce net inventory valuations and have effects on net income. At the end of $2020,$ inventory would be valued at

$

under the direct method and

$

under the allowance method. Income would be reduced by

$

after the entry to reduce inventory to market under the direct method and

$

after the entry to reduce inventory to market under the allowance method.