Oregon Resources, which uses the FIFO inventory costing method, has the following account balances at December $31,2025,$ prior to releasing the financial statements for the year:

$\backslash$table$[[$Merchandise Inventory, ending,$$,16,500],[$Cost of Goods Sold,,$70,000],[$Net Sales Revenue,,$124,000]]$

Oregon has determined that the current replacement cost $($current market value$)$ of the December $31,2025,$ ending merchandise inventory is $$13,500$

Read the requirements. entry required" in the first cell in the "Accounts" column and leave all other cells blank$)$

$\backslash$table$[[$Date$,$Accounts and Explanation,Debit,Credit$],[$Dec$.31],[,,,],[,,,],[,,,],[,,,]]$

Requirements

Prepare any adjusting journal entry required from the information given.

What value would Oregon report on the balance sheet at December $31,2025,$ for merchandise inventory?