Forester Company has five products in its inventory. Information about the December 31, 2018, inventory follows.

Product		Quantity		Unit Cost				Unit Replacement Cost				Unit Selling Price
A		600		$	12			$	14			$	18
B		1,000			17				13				20
C		600			5				4				10
D		600			9				6				8
E		600			16				14				15

The cost to sell for each product consists of a 10 percent sales commission. The normal profit percentage for each product is 25 percent of the selling price. Required: 1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products.

Product (units)	RC	NRV	NRV-NP	Market	Cost	Inventory Value
A (600)
B (1000)
C (600)
D (600)
E (600)
Total				$0	$0	$0

2a. Determine the carrying value of inventory at December 31, 2018, assuming the LCM rule is applied to the entire inventory. (Do not round intermediate calculations.)

Inventory carrying value

2b. Record any necessary year-end adjusting entry assuming that inventory write-downs are common for Forester Company.

Note: Enter debits before credits.

Event	General Journal	Debit	Credit
1