haliza Year-end adjustments . Cost of Goods Sold Sales Revenue Beg bal End bal. Inventory 12,400 14,000 Bal. 78,000 Bal. 125,000 Print Done Tavistock Inc. uses a perpetual inventory system. Tavistock has these account balances at December 31, 2020, prior to making the year-end adjustments: (Click the icon to view the year-end adjustments.) A year ago, the net realizable value of Tavistock's ending inventory was $13,000, which exceeded cost of $12,400. Tavistock has determined that the net realizable value of the December 31, 2020, ending inventory is $12,000. Requirement Prepare Tavistock Inc.'s 2020 income statement through gross profit to show how the company would apply the lower-of-cost-and-net-realizable-value rule to its nventories. Tavistock Inc. Income Statement (partial) For the Year Ended December 31, 2020 Sales revenue Cost of goods sold Gross profit