Home Stop sells two product categories, furniture and accessories. Information pertaining to its year$-$end inventory is as follows: Journal entry worksheet

Record the year$-$end adjustment for inventory assuming the lower of cost or

net realizable value $($LCNRV$)$ rule is applied to product categories.

Note: Enter debits before credits. Journal entry worksheet

$1$

$2$

$3$

Record the year$-$end adjustment for inventory assuming the lower of cost or net realizable value $($LCNRV$)$ rule is applied to total inventory.

Note: Enter debits before credits.

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Required:

Determine the carrying value of inventory at year$-$end, assuming the lower of cost or market $($LCM$)$ rule is applied to $($a$)$ individual

products, $($b$)$ product categories, and $($c$)$ total inventory.

Assuming inventory write$-$downs are common for Home Stop, record any necessary year$-$end adjusting entry for each of the LCM

applications in requirement $1.$