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

		Per Unit
Item	Units	Cost		Market
Audio equipment
Receivers	345	$	90	$	98
CD players	260		111		100
MP3 players	326		86		95
Speakers	204		52		41
Video equipment
Handheld LCDs	480		150		125
VCRs	291		93		84
Camcorders	212		310		322
Car audio equipment
Satellite radios	185		70		84
CD/MP3 radios	170		97		105

Required:
1.	If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.) Calculate the lower of cost or market for the inventory applied separately to each item.