Canton Trade Marthas recent had laciduster sales. The rate of inventory tumover has dropped, and the merchandises which 4220 000. Before any adjustments at the end of the period the Cost of Goods Sold account has a balance of 5760 000 2018, and the net realable value of Canton's ending inventory is $60,000 below what the company actually paid for the Read the rememb dust At the same time, competion has forced Canton's suppliers to lower the prices that Canton will pay when replaces its inventory. It is now December 31 Requirement a. What accounting action should Canton take in this situation? Canton should apply the lower of cossor-market rute to account for inventories. The net realizable value of ending inventory is less than Canton's actual cost, so Canton must write the inventory up to set realisable value Requirement b. Give any journal entry required. (Record debits first the credits Exclude explanations from any ouma entries if no entry is required, select "No entity required in the first cell in the "Account column and leave all other cells blank: Journal Entry Accounts Date Debit Credit Dec 31 Inventory Requirement c. At what amount should the company report Inventory on the balance sheet? Ganton 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 at $ Requiremente. Discuss the accounting principle or concept that is most relevant to this situation is the reason to account for inventory using dreds accountants to report inventory at the most taletic and transparent amount