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Saltwater Trade Mart has recently had lackluster sales. The rate of iventory turnover has dropped, and the merchandise is gathering dust. At the same time, competition has forced Saltwater's suppliers to lower the prices that Saltwater will pay when it replaces its inventory. It is now December 31, 2018, and the net reae value of Salnwaters ending inventory is $60,000 helow what the company acually paid for the goods, which was $230,000. Before any adjustments at the end of the period, the Cost of Goods Sold account has a balance of S830,000. Read the requirements Requirement a. What accounting action should Saltwater take in this situation? Sa twater should apply the to account for inventories. The net realizable value of ending inventory is Saltwater's actual cost, so Saltwater must write the inventoryto net realizable value Requirement b. Give any journal entry required. (Record debits first, then credits. Exclude explanations from any joumal entries. If no entry is required, select "No entry required" in the first cell in the "Accounts" column and leave all other cells blank.) Journal Entry Date Accounts Debit Credit Dec 31