Problem $5-21$A $($Static$)$ Inventory valuation based on the lower$-$of$-$cost$-$or$-$market rule LO $5-2$

At the end of the year, Randy's Parts Company had the following items in inventory.

Required

a$.$ Determine the amount of ending inventory using the lower$-$of$-$cost$-$or$-$market rule applied to each individual inventory item.

b$.$ Provide the general journal entry necessary to write down the inventory based on Requirement a$.$ Assume that Randy's Parts

Company uses the perpetual inventory system.

c$.$ Determine the amount of ending inventory, assuming that the lower$-$of$-$cost$-$or$-$market rule is applied to the total inventory in

aggregate.

d$.$ Provide the general journal entry necessary to write down the inventory based on Requirement c$.$ Assume that Randy's Parts

Company uses the perpetual inventory system.

Complete this question by entering your answers in the tabs below.

Provide the general journal entry necessary to write down the inventory based on Requirement a$.$ Assume that Randy's Parts Company

uses the perpetual inventory system.

Note: If no entry is required for a transaction or event, select $"$No journal entry required" in the first account field.

Journal entry worksheet

Record entry for inventory loss.

Note: Enter debits before credits.