Canton Trade Mart has recently had lackluster sales. The rate of inventory turnover has dropped, and the merchandise is gathering dust. At the same time, competition has forced Canton's suppliers to lower the prices that Canton will pay when it replaces its inventory. It is now December 31, 2018, and the net realizable value of Canton's ending inventory is $70.000 below what the company actually paid for the goods, which was $210,000. Before any adjustments at the end of the period, the Cost of Goods Sold account has a balance of $840,000 Read the requirements Requirement a. What accounting action should Canton take in this situation? Canton should apply the to account for inventories. The net realizable value of ending inventory is Canton's actual cost, so Canton must write the inventory to net realizablo value Requirement b. Give any journal entry required (Record debits first then credits. Exclude ex nations from any journal 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 Accounts Date Debit Credit Dec 31 Journal Entry Accounts Date Debit Credit Dec 31 Requirement c. At what amount should the company report Inventory on the balance sheet? Canton should report Inventory on the balance sheet at $ Requirement d. At what amount should the company report Cost of Goods Sold on the income statement? Canton should report Cost of Goods Sold on the income statement of Requirement e. Discuss the accounting principle or concept that is most relevant to this situation $ is the reason to account for inventory using report inventory at the most realistic and transparent amount y directs accountants to