Callowater Gold Clubs Inc. uses the LIFO inventory method and values its inventory using the lower-of-cost-or-market (LCM) rule. Callowater Golf Clubs Inc. has the following account balances at December 31, 2018, before releasing its financial statements for the year:

Callowster Golf Clubs, Inc., uses the LIFO inventory method and values its inventory using the lower-of-cost or market (LCM) rule. Callowater Golf Clubs, Inc., has the following account balances at December 31, 2018, before releasing its financial statements for the year. (Click the loon to view the accounts) The accountant for Callowater Golf Clubs, Inc., has determined that the replacement cost (cument market value) of the ending inventory as of December 31, 2018, is $58,300. Read the requirements. Requirement 1. Which accounting principle or concept is most relevant to Callowater Golf Clubs, Inc.'s decision to use LCM? is most relevant to Callowater Golf Clubs, Inc.'s decision to use LCM Requirement 2. What value for Inventory would Callowater Golf Clubs, Inc., report on the balance sheet at December 31, 2018? According to the lower-of-cost-or-market nule, Callowater Golf Clubs, inc, should report inventory on the December 31, 2018 balance sheet at Requirement 3. Prepare any adjusting journal entry required from the information given. (Record debits first, then credits Exclude explanations from any joumal entries. If no adjustment is needed, select "No entry required on the first line of the Accounts column and leave all other cells blank) Journal Entry The Dec Date 31 Accounts Debil Credit Next Data table Beg Bal End Bal Inventory 47,900 69,000 Bal Cost of goods sold Print 244,000 Done Sales revenue I Bal 303,000 X Requirements 1. Which accounting principle or concept is most relevant to Callowater Golf Clubs, Inc.'s decision to use LCM? 2. 3. What value for Inventory would Callowater Golf Clubs, Inc., report on the balance sheet at December 31, 2018? Prepare any adjusting journal entry required from the information given. Print Done - X