A physical inventory of Liverpool Company taken at December 31reveals the following.

		Per Unit
Item	Units	Cost			Market
Car audioequipment
Speakers	345	$	90		$	98
Stereos	260		111			100
Amplifiers	326		86			95
Subwoofers	204		52			41
Security equipment
Alarms	480		150			125
Locks	291		93			84
Cameras	212		310			322
Binocular equipment
Tripods	185		70			84
Stabilizers	170		97			105

Required:
1. Calculate the lower of cost or market for theinventory applied separately to each item.
2. If the market amount is less than therecorded cost of the inventory, then record the LCM adjustment tothe Merchandise Inventory account.

Calculate the lower of cost or market for the inventory appliedseparately to each item.

		Per Unit		Total		LCM applied to:
Item	Units	Cost	Market	Cost	Market		Individual Items
Car audio equipment
Speakers	345	$90	$98
Stereos	260	111.00	100.00
Amplifiers	326	86.00	95.00
Subwoofers	204	52.00	41.00
Security equipment
Alarms	480	150.00	125.00
Locks	291	93.00	84.00
Cameras	212	310.00	322.00
Binocular equipment
Tripods	185	70.00	84.00
Stabilizers	170	97.00	105.00
Total

Journal entry worksheet

Record LCM adjustment.

Note: Enter debits before credits.

Date

General Journal

Debit

Credit

Dec 31

Answer rating: 100% (QA)

Question Answers All working forms part of the answer Requirement 1 Per Unit Total LCM applied to I... View the full answer