Oregon Resources, which uses the FIFO inventory costing method, has the following account balances at August 31, 2025, prior to releasing the financial statements for the year: Merchandise Inventory, ending $ 14,000 Cost of Goods Sold Net Sales Revenue 70,000 122,000 Oregon has determined that the current replacement cost (current market value) of the August 31, 2025, ending merchandise inventory is $11,800. Read the equirements Requirement 1. Prepare any adjusting journal entry required from the given information. (Record debits first, then credits. Select the explanation on the last line of the journal entry. For situations that do not require an entry, make sure to select "No entry required" in the first cell in the "Accounts" column and leave all other cells blank.) Date Aug. 31 Accounts and Explanation Debit Credit Requirement 2. What value would Oregon report on the balance sheet at August 31, 2025, for merchandise inventory? According to the 3/2 rule, Oregon Resources should report inventory on the August 31 balance sheet at 1:5