one accounting problem

Exercise 6-13 (Static) Calculate inventory using lower of cost and net realizable value (LO6-6) Home Furnishings reports inventory using the lower of cost and net realizable value (NRV). Below is information related to its year-end Inventory Inventory Quantity Unit Cost Unit NRV Furniture 200 $ 85 $ 100 Electronics 50 400 300 Required: 1. Calculate the total recorded cost of ending Inventory before any adjustments. 2. Calculate ending inventory using the lower of cost and net realizable value. 3. Record any necessary adjusting entry for Inventory. 4. Determine the impact of the adjusting entry in the financial statements. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the impact of the adjusting entry in the financial statements. (Amounts to be deducted should be entered with minus sign.) Income Statement: Revenues Expenses Net Income 37,000 Accounts Receivable 5,000 Cost of Goods Sold 32,000 + Balance Sheet: Assets Liabilities Stockholders' Equity 37,000 Inventory Required 3