Ace Hardware Store sells two product categories, tools and paint products. Information pertaining to its year$-$end inventory is as Determine the carrying value of inventory at year$-$end, assuming the lower of cost or net realizable value $($LCNRV$)$ rule is

applied to $($a$)$ individual products, $($b$)$ product categories, and $($c$)$ total inventory. $3$

Record the year$-$end adjustment for inventory assuming the lower of cost or

net realizable value $($LCNRV$)$ rule is applied to individual products.

Note: Enter debits before credits. Record the year$-$end adjustment for inventory assuming the lower of cost or

net realizable value $($LCNRV$)$ rule is applied to product categories.

Note: Enter debits before credits.Record the year$-$end adjustment for inventory assuming the lower of cost or

net realizable value $($LCNRV$)$ rule is applied to total inventory.

Note: Enter debits before credits.

follows:

Required:

Determine the carrying value of inventory at year$-$end, assuming the lower of cost or net realizable value $($LCNRV$)$ rule is applied

to $($a$)$ individual products, $($b$)$ product categories, and $($c$)$ total inventory.

Assuming inventory write$-$downs are common for Ace, record any necessary year$-$end adjusting entry for each of the LCNRV

applications in requirement $1.$