At 12/31/17, the end of Jenner Company's first year of business, inventory was $6,100 and $5,100 at cost and at market, respectively.

Following is data relative to the 12/31/18 inventory of Jenner:

Item		Original Cost Per Unit			Replacement Cost
A		$ .65			$ .45
B		.45			.40
C		.70			.75
D		.75			.65
E		.90			.85

Selling price is $1.00/unit for all items. Disposal costs amount to 10% of selling price and a "normal" profit is 30% of selling price. There are 1,500 units of each item in the 12/31/18 inventory.

Prepare the entry at 12/31/17 necessary to implement the lower-of-cost-or-market procedure assuming Jenner uses a contra account for its balance sheet. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)