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At December 31, Smith Furniture had an ending inventory balance of $633,000. Smith uses the FIFO perpetual inventory system. The net realizable value is $617,000.

At December 31, Smith Furniture had an ending inventory balance of $633,000. Smith uses the FIFO perpetual inventory system. The net realizable value is $617,000. The normal profit on this inventory is $50,000. Which journal entry is required on December 31 to write down inventory to market if Smith uses the direct method?

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