Freshwater Trade Marthas recently had tackluster 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 realable value of Freshwater's ending inventory is $65,000 below what the company actually paid for the goods, which wies $220,000. Before any adjustments at the end of the period, the cost of Goods Sold account has a balance of 5830,000 Read the requirements (0/3) (0/2) Requirement a. What accounting action should Freshwater take in this situation? Freshwater should apply the lower of cost or market rule to account for inventones. The net realizablo value of ending inventory is less than Freshwater's actual cost, so Freshwater must write the inventory down to not realicable value Requirement b. Give any journal entry required. (Record debits first, then credits Exclude explanations trom any journal entres. I no entry is required, select "No entry required in the first coll in the "Accounts column and louve all other colls blank) Journal Entry Accounts Debit Credit Date Dec 31