he following information applies to the questions displayed below.] A local Chevrolet dealership carries the following types of vehicles: Inventory Items Quantity Cost per Unit NRV per Unit Vans 2 $26,000 $24,000 Trucks 5 17,800 16,800 2-door sedans 1 12,800 14,800 4-door sedans 6 16,800 19,800 Sports cars 2 36,000 39,000 SUVs 7 29,600 27,000 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks.

1. Compute the total cost of the entire inventory.

2. Determine whether each inventory item would be reported at cost or net realizable value (NRV). Enter the Cost per Unit for the "Lower of Cost or net realizable value" and then multiply the quantity of each inventory item by the appropriate cost or NRV amount and enter it in the Total column.

3. Prepare necessary entry to write down inventory from cost to net realizable value. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

4. The write-down of inventory from cost to net realizable value reduces total assets and increases total expenses, leading to lower net income and lower retained earnings.