31 Close all returns, allowances and discounts. 3. North Company is preparing the annual financial statements dated December 31, 2020. Information about inventory stocked for regular sale follows: Item Quantity Unit Cost When Replacement Cost on Hand Acquired (market) at year end 100 $30 $20 80 25 28 35 55 58 75 40 35 B C D a. Compute the valuation for the December 31, 2020, inventory using the lower of cost or market basis. Make necessary adjusting journal entry(ies) b. Sold 15 units of Item A at $25 each and written-off 5 units of Item D. Make necessary journal entries. 1