A local Chevrolet dealership carries the following types of vehicles:

Inventory Items	Quantity	Cost per Unit	NRV per Unit
Vans	3	$18,000	$16,000
Trucks	6	16,200	15,200
2-door sedans	2	11,200	13,200
4-door sedans	7	15,200	18,200
Sports cars	3	28,000	31,000
SUVs	5	26,400	19,000

Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks.

2. Determine whether each inventory item would be reported at cost or net realizable value (NRV). Enter the Cost per Unit for the "Lower of Cost or net realizable value" and then multiply the quantity of each inventory item by the appropriate cost or NRV amount and enter it in the Total column.

3. Prepare necessary entry to write down inventory from cost to net realizable value. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Lower of Cost Inventory Items Cost or NRV and NRV per unit Total Vans Trucks 2-door sedans 4-door sedans Sports cars SUVS $ 0 Total Journal entry worksheet 1 Record the adjustment for inventory. Note: Enter debits before credits. Transaction Debit General Journal Credit 1 Record entry Clear entry View general journal