Data Table Cost of goods sold Sales revenue Beg Bal End Bal Inventory 34,800 36,800 Bal 93,000 Bal 166,000 Richmond Resources, Inc., has the following account balances at May 31, 2018. The inventory balance was determined using FIFO. (Click the icon to view the balances.) Richmond Resources, Inc., has determined that the replacement cost (current market value) of the May 31, 2018, ending inventory is $35,900. Read the requirements. Requirement 1. What value would Richmond Resources, Inc., report on the balance sheet at May 31, 2018, for inventory, assuming the company uses the lower-of-cost-or-market rule? According to the lower-of-cost-or-market rule, Richmond Resources, Inc., should report inventory on the May 31 balance sheet at $35,900. Requirement 2. Prepare any adjusting journal entry required based on the information given. (Record debits first, then credits. Exclude explanations from any journal entries. If no adjusting entry is needed, select "No entry required" on the first line of the Accounts column and leave all other cells blank.) Journal Entry Date Debit Credit Accounts Cost of goods sold May 31 Inventory