Given the Following Information for the Teresa Company If the Allowance Method of Recording Lower of Cost or Date

Given the following information for the Teresa Company: $\begin{array}{lll}\text { Date } & \text { Cost } & \text { Market } \\\hline \text { December 31, 2010 } & \$ 800 & \$ 800 \\\text { December 31, 2011 } & 1,000 & 940 \\\text { December 31, 2012 } & 1,100 & 1,060\end{array}$ If the allowance method of recording lower of cost or market is in use, which December 31, 2012 entry is not correct?

A)
Loss Due to Market Valuation $\quad$$\quad$ 40
Allowance to Reduce Inventory to Market $\quad$ 40
B)
Allowance to Reduce Inventory to Market $\quad$ 20
Loss Recovery Due to Market Valuation $\quad$$\quad$ 20
C)
$\begin{array}{ll}\text { Inventory } & 1,100 \\\text { Income Summary } & 1,100\end{array}$
D)
$\begin{array}{cc}\text { Income Summary } & 1,000 \\\text { Inventory } & 1,000\end{array}$