E7-10 Reporting Inventory at Lower of Cost or Market [LO 74 The tolowing information applies to the questions displayed below. Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending inventory Information about the five major ltems stocked for regular sale follows: Section Break E7-10 Reporting Inventory at Lower of Cost or Market LO 7-4 value: 10.00 points E7-10 Part 1 Complete the two columns of the table. Quantity When Value at perLCM Item on Hand Acqued Year-End Itenm Cost Alligator 34 29 50 60 40 25 $ 2,380 4,250 1,200 1,600 10,500 Bear Bureaus 85 50 20 62 Dingo Cribs Elephant 1- Compute the amount that should be reported for the ending inventory b. using the LCM rule applied to each item. E7-10 Part 2 2. Prepare the journal entry that Peterson Furniture Designs would record on December 31 to write-down its inventory to LCM. (If no entry is required for a transactionlevent, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record inventory write down to LCM Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry View general journal Clear entry Hints References eBook &Resources