Furniture Fashions sells high-end furniture (dressers, chairs, sofas, and tables). Due to vacillating customer tastes and fierce competition, attainable selling prices have been erratic, particularly for certain types of furniture. Based on its experience, management projects next years sales prices of year-end inventory using the trend in monthly sales prices during the current year. Presented below are those trends in sales prices for each of its four types of inventory, along with next years projected sales price. Also presented are the number of units of ending inventory and the average cost of each of those units.

Prepare the year-end adjusting entry to record inventory at the lower of cost or net realizable value (Hint: Be sure to account for the number of units of ending inventory in your calculation). (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

• Record the inventory using the lower of cost or net realizable value.

Note: Enter debits before credits.

Event	General Journal	Debit	Credit
1

Average Monthly Sales Prices and Projections $2,676 $3,000 $2,500 $2,000 $1,500 $1,000 $500 | $1,177 16870 $658 May June July August January February March April --Dressers Chairs Sofas Tables September October November December Projection Average Unit Cost of Ending Inventory Units of Ending Inventory 75 65 $1,670 $1,540 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $810 $320 Dressers Chairs Sofas Tables Dressers Chairs Sofas Tables Average Monthly Sales Prices and Projections $2,676 $3,000 $2,500 $2,000 $1,500 $1,000 $500 | $1,177 16870 $658 May June July August January February March April --Dressers Chairs Sofas Tables September October November December Projection Average Unit Cost of Ending Inventory Units of Ending Inventory 75 65 $1,670 $1,540 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $810 $320 Dressers Chairs Sofas Tables Dressers Chairs Sofas Tables