Case Inventory! arket. Proto GP $66,500 E6-22 Applying the lower-of-cost-or-market rule to inventories Nutriset Foods reports merchandise inventory at the lower-of-cost-or-market. P. releasing its financial statements for the year ended March 31, 2019, Nutriset's pre nary income statement, before the year-end adjustments, appears as follows: NUTRISET FOODS Income Statement (Partial) Year Ended March 31, 2019 Net Sales Revenue Cost of Goods Sold Gross Profit $ 118,000 47,000 $ 71,000 Nutriset has determined that the current replacement cost of ending merchandise inventory is $19,500. Cost is $24,000. Requirements 1. Journalize the adjusting entry for merchandise inventory, if any is required. 2. Prepare a revised partial income statement to show how Nutriset Foods should report sales, cost of goods sold, and gross profit