GDL Enterprises has the following account balances at December 31, 2010. The inventory balance was determined using FIFO.

GDL Enterprises has determined that the replacement cost (current market value) of the December 31, 2010, ending inventory is $32,400.
Requirements 1. What value would GDL Enterprises report on the balance sheet at December 31, 2010, for inventory assuming the company uses the lower-of-cost-or-market rule?
2. Prepare any adjusting journal entry required from the information given.

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Inventory Beg Bal End Bal 26,500 31,800 Cost of Goods Sold Sales Revenue Ball 106,000 Bal 176,000