Holden Lighting has the following groups of inventory and net realizable value for its light fixtures:

Cost NRV

Ceiling Lights $23,500 $18,100

Chandeliers 17,500 15,100

Table Lamps 19,300 21,800

Floor Lamps 16,000 19,400

Desk Lamps 8,700 6,200

Total Inventory $85,000 $80,600

Instructions

(a) Determine the lower of cost and net realizable value of the ending inventory for Codify Lighting.

(b) Prepare the journal entry required, if any, to record the adjustments from cost to net realizable value.