During July, Laesch Company, which uses a perpetual inventory system, sold 1,240 units from its LIFO-based inventory, which had originally cost $18 per unit. The replacement cost is expected to be $27 per unit. Required: Respond to the following two independent scenarios as requested. a. Case 1: In July, the company is planning to reduce its inventory and expects to replace only 900 of these units by December 31, the end of its fiscal year. (1) Prepare the entry in July to record the sale of the 1,240 units. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)