Cullumber's Gift Shop uses a perpetual inventory system and the FIFO cost formula for valuing inventory. The compary is now in the

process of comparing the cost of its imventory with its net realizable value. The following data are available at Cullumber's Gift Shop's

year end, December $31$ :

$($a$)$

$$ Your answer is correct.

Determine the lower of cost and net realizable value of the ending inventory assuming Cullumber's Gift Shop applies LCNRV on

individual items.

Lower of cost and net realizable value

eTextbook and Media

List of Accounts

$($b$)$

Prepare the joumal entry required, if any, to record the adjustment from cost to net realizable value. $($Credit account titles are

automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles

and enter $0$ for the amounts. List debit entry before credit entry.$)$