Glorias Gift Shop uses a perpetual inventory system and the FIFO cost formula for valuing inventory. The company is now in the process of comparing the cost of its inventory with its net realizable value. The following data are available at Glorias Gift Shops year end, December 31:

Determine the lower of cost and net realizable value of the ending inventory

Prepare the journal entry required, if any, to record the adjustment from cost to net realizable value

\begin{tabular}{lccc} & Units & & Unit Cost \\ \cline { 2 - 2 } Clothing & 95 & & $7 \\ Jewellery & 72 & & 20 \\ Greeting cards & 47 & & 1 \\ Stuffed toys & 56 & & 12 \end{tabular} \begin{tabular}{c} Net Realizable Value per Unit \\ \hline$6 \\ 28 \\ 2 \\ 39 \end{tabular}