Nutriset Foods reports merchandise inventory at the lower-of-cost-or-market. Prior to releasing its financial statements for the year ended March 31, 2019, Nutriset's preliminary income statement, before the year-end adjustments, appears as follows:

Nutriset has determined that the current replacement cost of ending merchandise inventory is $19,500. Cost is $24,000.
Requirements
1. Journalize the adjusting entry for merchandise inventory, if any is required.
2. Prepare a revised partial income statement to show

Transcribed Image Text:

NUTRISET FOODS Income Statement (Partial) Year Ended March 31, 2019 $ 118,000 Net Sales Revenue Cost of Goods Sold 47,000 $ 71,000 Gross Profit