Azza's inventory account contains 50 computer monitors that were purchased for $75 each. These monitors were purchased for a specific client who ended up backing out on a contract. The monitors would have been sold for $150 each if the contract had continued. The monitors have been sitting in inventory most of the year and are now an out-of-date model. The monitors can be sold to an online overstock company for $30 each. Azza will have to pay $80 of shipping to have the monitors delivered to the online retailers warehouse. If the monitors were purchased now from the manufacturer, they would cost $45 each.

On the Preliminary Trial Balance, Inventory has a $98,500 debit balance.

On the Post Closing Trial Balance, Inventory has a $60,400 debit balance.

Prepare end of year adjusting entries, corrections, and any other necessary entries.