Harris Bearing Company uses the periodic inventory system to account for its inventory. The following information was available from the companys inventory records for October:

Purchases

10/1 (balance) 2,400 units @$10

10/12 3,000 units @$5

10/25 1,500 units @$9

Sales

10/14 3,800 unites @$16

10/30 1,700 units @21

1. On October 31, Harris found that the net realizable value of its inventory is $9,800. Harris usually states its inventory on its balance sheet at lower of net realizable value or cost (assuming the use of First-in First-Out). How Harris will report its inventory on its October 31s balance sheet and its cost of goods sold on its October income statement? (Hint: the lower of cost vs. net realizable value rule).