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Freshwater Trade Mart has recently had lackluster sales The rate of inventory turnover has dropped and the merchandise is gathering dust. At the same time,

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Freshwater Trade Mart has recently had lackluster sales The rate of inventory turnover has dropped and the merchandise is gathering dust. At the same time, competition has forced Freshwater's suppliers to lower the prices that Freshwater will pay when it replaces its inventory It is now December 31, 2018, and the net realizable value of Freshwater's ending inventory is $92,000 below what the company actually paid for the goods, which was $190,000. Before any adjustments at the end of the period, the Cost of Goods Sold account has a balance of $760,000 Read the requirements Requirement a. What accounting action should Freshwater take in this situation? Freshwater should apply the cost, so Freshwater must write the inventory Mto account for inventones The not realizable value of ending inventory is to not realizable value Freshwater's actual Requirement b. Give any journal entry required Record debits first, then credits Exclude explanations from any Journal entries. I no enty is required, select "No entry required in the first cell in the "Accounts column and leave all other cells blank) Journal Entry Accounts Date Debit Credit Dec 31 0 Requirement c. At what amount should the company report Inventory on the balance sheet? 00 Freshwater should report Inventory on the balance sheet al 5 00 Requirement. Al what amount should the company report Inventory on the balance shoot Ooft Freshwater should report Inventory on the balance sheet of $ Ooft Requirement d. At what amount should the company report Cost of Goods Sold on the income statement? O of Freshwater should report cost of Goods Sold on the income statemental 5 Requiremente. Discuss the accounting principle or concept that is most relevant to this situation 0 of 1 directs accounts to is the reason to account for inventory using report inventory at the most realistic and transparent amount Oo1

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