A company provides the following information related to its inventory.
Inventory	Number of Units	Unit Cost	Unit NRV
Item A	3,800	$52	$46
Item B	4,200	$28	$30
Item C	2,500	$34	$31
Item D	1,300	$22	$24
Required:
1. Calculate ending inventory using the lower of cost and net realizable value rule.
2. Based on your analysis, prepare the journal entry needed to adjust inventory.
Requirement 1: Ending Inventory using Lower of Cost and Net Realizable Value
(Use cells A2 to D8 from the given information above to complete this question. Use the MIN function to calculate the lower of cost or NRV. Hint: To determine whether an adjustment is needed, use an IF function to compare cost and NRV.)

Inventory	Total Cost	Total NRV	Lower of Cost and NRV	Adjustment Needed
Item A
Item B
Item C
Item D
Total
Requirement 2: Adjust Inventory to Lower of Cost of Net Realizable Value
(Use cells A2 to D8 from the given information above to complete this question.)
Account	Debit	Credit
Cost of Goods Sold
Inventory