Richmond 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 Merchandise Inventory, ending Richmond has determined that the current replacement cost (current market value) of the December 31, 2025, ending merchandise inventory is $12,800. Read the requirement Cost of Goods Sold Net Sales Revenue $ 13,000 70,500 117,000 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 Dec. 31 Accounts and Explanation Debit Credit Requirement 2. What value would Richmond report on the balance sheet at December 31, 2025, for merchandise inventory? According to the rule, Richmond Resources should report inventory on the December 31 balance sheet at