A physical inventory of Liverpool Company taken at December $31$ reveals the following.

$\backslash$table$[[,,$Per Unit$],[$Item$,$Units,Cost,Market$],[$Car audio equipment,,$100,$$$108],[$Speakers$,345,$$$100,110],[$Stereos$,260,121,105],[$Amplifiers$,326,96,51],[$Subwoofers$,204,62,],[$Security equipment,,,$],[$Alarms$,480,160,135],[$Locks$,291,103,94],[$Cameras$,212,320,332],[$Binocular equipment,,,$],[$Tripods$,185,80,94],[$Stabilizers$,170,107,115]]$

Required:

Compute the lower of cost or market for the inventory applied separately to each item.

If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account. Compute the lower of cost or market for the inventory applied separately to each item.

$\backslash$table$[[$Item$,$Units,Per Unit,Total,LCM applied to:$],[$Cost$,$Market,Cost,Market,$\backslash$table$[[$Individua$],[$Items$]]],[$Car audio equipment$],[$Speakers$,345,$$$,100,$$ $,108,,,],[$Stereos$,260,121,110,,,],[$Amplifiers$,326,96,105,,,],[$Subwoofers$,204,62,51,,,],[$Security equipment$],[$Alarms$,480,160,135,,,],[$Locks$,291,103,94,,,],[$Cameras$,212,320,332,,,],[$Binocular equipment$],[$Tripods$,185,80,94,,,],[$Stabilizers$,170,107,115,,,],[$Total$,,,,,,]]$ If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the

account.

Journal entry worksheet

$1$

Record LCM adjustment.

Note: Enter debits before credits.