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Li Corp. purchased a container load of antiques for resale at an invoice cost of $$1,500,000.$ The goods were paid for when they were

shipped in early June. The container arrived in Canada at the end of August, and then at Li's location, by rail, at the end of September.

The goods were then available for sale. Freight costs of $$157,500$ were paid in October. Li has recorded $$112,500$ of total interest

expense from $$2,500,000$ of general borrowing over the year.

Required:

Prepare the adjusting journal entry to capitalize borrowing costs on inventory at year$-$end December $31.($If no entry is required for a

transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations.$)$