K Aquarium Trade Mart has recently had lackluster sales. The rate of inventory turnover has dropped, and the merchandise is gathering dust. At the same time, competition has forced Aquarium's suppliers to lower the prices that Aquarium will pay when it replaces its inventory. It is now December 31, 2021, and the net realizable value of Aquarium's ending inventory is $90,000 below what the company actually paid for the goods, which was $270,000. Before any adjustments at the end of the period, the Cost of Goods Sold account has a balance of $780,000 Read the requirements. Help Requirement a. What accounting action should Aquarium take in this situation? Aquarium should apply the lower-of-cost-or-market rule to account for inventories. The net realizable value of ending inventory is less than Aquarium's actual cost, so Aquarium must write the inventory down to net realizable value. Requirement b. Give any journal entry required. (Record debits first, then credits. Exclude explanations from any journal entries. If no entry is required, select "No entry required" in the first cell in the "Accounts" column and leave all other fields blank.) Dec Date Journal Entry Accounts Debit Credit 31