E$7-10($Algo$)$ Reporting Inventory at Lower of Cost and Net Realizable Value $[$LO$7-4]$

Peterson Furniture Designs is preparing Its annual financial statements dated December $31.$ Ending inventory Information about the five major Items stocked for regular sale follows:

Required:

$1-$a$.$ Complete the final two columns of the table.

$1-$b$.$ Compute the amount that should be reported for the ending inventory using the LC$\backslash$&NRV rule applied to each item.

Ending inventory

$2.$ Prepare the Journal entry that Peterson Furniture Designs would record on December $31.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" In the first account fleld.

Journal entry worksheet

A

Record the write$-$down in inventory.