6-24 Please show all work.

LO 3 E6-24A. (Learning Objective 3: Apply the lower-of-cost-or-market rule to inventories) Oak Ridge Garden Supplies uses a perpetual inventory system. The company has these account bal- ances at May 31, 2021, prior to making the year-end adjustments: Cost of Goods Sold Sales Revenue Inventory Beg bal 10,000 End bal 13,000 Bal 71,000 Bal 120,000 A year ago, the net realizable value of ending inventory was $11,500, which exceeded the cost of $10,000. Oak Ridge has determined that the net realizable value of the May 31, 2021 ending inventory is $12,000. Requirement 1. Prepare the company's 2021 income statement through gross profit to show how the com- pany would apply the lower-of-cost-or-market rule to its inventories