Gonzales' Great Garage Sale prepared the following analysis of its balloon inventory on December 31. 1. Using the column at the far right, compute the carrying value of Gonzales' ending inventory using the lower of cost or market rule for each product AND then total the value of Gonzales' inventory assuming lower of cost or market is applied at December 31.

Historical Cost Replacement Cost

Balloon Shape Quantity per Unit per Unit Total LCM by Unit T-Rex 800 $10 $8 Happy Emoji 500 $7 $7 Crescent Moon 300 $2 $6 Redhawk 100 $15 $13 Bulldog 200 $9 $18

TOTAL LCM Note: There should be a LCM by Unit $ amount for each Balloon Shape and then Total in the right- most column. 2. Prepare the journal entry needed for Gonzales at year-end to value the inventory at lower of cost or market. If no journal entry is needed, write NO ENTRY.