Determine the financial statement effects of any adjustment to inventory for the lower of cost and net realizable value.

Note: Amounts to be deducted should be indicated by a minus sign.

Balance Sheet Income Statement

Assets Liabilities Stockholders' Equity Revenues Expenses Net Income

Common Stock Retained Earnings

Inventory Cost of Goods Sold

Mitchell$$s Specialties sells high$-$end furniture $($dressers$,$ chairs,sofas, and tables$).$ The company has been in business for several years. Based on its experience, management projects next year$$s sales prices of year$-$end inventory using the trend in monthly sales prices during the current year. Presented below are those trends in sales prices for each of its four types of inventory, as well as next year$$s projected sales price. Also presented are the number of units of ending inventory and the average cost of each of those units.