Garden Supplies uses a perpetual inventory system. The company has these account balances at December $31,2018,$ prior to making the$$ year$-$end adjustments:

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Part $1$

Boston Garden Supplies

Income Statement $($partial$)$

Year Ended December $31,2018$

Gross profit

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Data table

Inventory

Cost of Goods Sold

Sales Revenue

Beg bal

$11,000$

End bal

$14,500$

Bal

$70,000$

Bal

$119,000$

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A year$$ ago, the net realizable value of ending inventory was $ $13$ comma $400,$ which exceeded the cost of $ $11$ comma $000.$ Boston has determined that the net realizable value of the December $31,2018,$ ending inventory is $ $10$ comma $800.$Prepare the$$ company's $2018$ income statement through gross profit to show how the company would apply the$$ lower$-$of$-$cost$-$or$-$market rule to its inventories.