Smart-Tech Office Equipment Company has the following cost and net realizable value data at December 31, 2014:
Inventory Categories Cost Net Realizable Value
Computers.................................$24,000.....................$21,500
Office Equipment.........................19,000........................19,500
Printers......................................14,000........................10,600
(a) Calculate the lower of cost and net realizable value valuation.
(b) What adjustment should the company record if it uses a perpetual inventory system?