At 12/31/20, the end of Cullumber Company's first year of business, inventory was $6,200 and $5,500 at cost and at market, respectively. Following is data relative to the 12/31/21 inventory of Jenner:

Item		Original Cost Per Unit			Replacement Cost
A		$0.70			$0.35
B		0.45			0.40
C		0.80			0.85
D		0.75			0.65
E		0.85			0.80

Selling price is $1.00/unit for all items. Disposal costs amount to 10% of selling price and a "normal" profit is 20% of selling price. There are 1,500 units of each item in the 12/31/21 inventory.

a.Prepare the entry at 12/31/20 necessary to implement the lower-of-cost-or-market procedure assuming Cullumber uses a contra account for its balance sheet.