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.	Calculate the lower of cost or market for the inventory applied separately to each item. Total LCM applied to cost / Market Individual items
	Total

Journal entry worksheet

Record LCM adjustment.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Dec 31