2. The following data relates to inventory values for Lawrence Corp. for 2015 through 2017: at Cost $200,000 S225,000 Inventory Value on 12/31/2017$250,000 at Net Realizable Value $200,000 $215,000 $260,000 Inventory Value on 12/31/2015 Inventory Value on 12/31/2016 If Lawrence uses a Loss account and an Allowance to Reduce Inventory to NRV account to record net realizable value in place of cost, the 2017 adjusting journal entry to reflect the application of the Lower of Cost or Net Realizable Value rule should include: a) A $10,000 credit to the Inventory account. b) A $10,000 credit to the Allowance to Reduce Inventory to NRV account. c) A $10,000 debit to the Allowance to Reduce Inventory to NRV account. d) No adjusting journal entry is required as Cost is lower than Net Realizable Value