b) Prepare the journal entry required, if any, to record the adjustment from cost to net realizable value.

Blossom Company uses a perpetual inventory system and the FIFO cost formula for valuing inventory. The company is now in the process of comparing the cost of its inventory with its net realizable value. The following data are available at Blossom Company's year end, December 31: Unit Cost Net Realizable Value per Unit Units 87 $8 67 20 Clothing Jewelry Greeting cards Stuffed toys 42 58 Determine the lower of cost and net realizable value of the ending inventory assuming Blossom Company applies LCNRV on individual items. Lower of cost and net realizable value