Calculating the Lower of Cost and Net Realizable Value (LCNRV) The decline in merchandise inventory from cost to NRV is recorded in an adjusting entry at the end of the period. Calculate LCNRV item by item AND then show the adjusted journal entry to lower the cost of the ending inventory.

Please use this table to write your answer: Item # of Unit Cost/Unit Total Cost NRV/Unit Total NRV LCNRV applied to: Bicycles: Items Groups Roadster 20 $500 $550 Sprint 60 600 600 Group subtotal Kayaks: A1 Series 20 $200 $190 Trax-4 30 $300 400 Group subtotal Total inventory

Write the adjusting journal entry here: