4 Katherine's Etsy store, the Humbled Jeweler, reported the following cost and net realizable value information for inventory at December 31: 5 6 Instructions 7 a) Calculate the ending inventory balance for rings and necklaces using the lower of cost and net realizable value (LCNRV) for each item. (5 marks) 8 Item Units Unit Cost Unit NRV Lower of Cost and NRV per item LCNRV total Ending Inventory Total cost/item 100 50 $ 46.25$ $260.00 $ 187.25 220.50 9 10 Rings: 11 Knuckle Rings 12 Heart Ring 13 Necklaces: 14 Gold initial necklace 15 Pendant 16 Total 17 75 60 $120.00 $ $117.00 $ 110.00 160.00 17 18 D) Why is inventory written down to the lower of cost or its net realizable value? (1 mark) 19 20 21 22 c) Prepare the adjusting entry to write the inventory down to the lower of cost or net realizable value. (2 marks) 23 Account Debit Credit 24 25 26 27 End of natin