Last year bell-bottom jeans were fashionable and this year boot cut jeans are are in style. A retail company's inventory has 375 bell-bottom jeans that cost $17 each and could be replaced for $15. The inventory also includes 1,000 boot cut jeans that cost $16 each and could be replaced for $19. Prepare the journal entry that would be used to make the adjustment, and show the effects of the adjustment on the accounting equation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Record the entry for cost of merchandise sold on account from inventories

Journal Entry Worksheet Record the entry for cost of merchandise sold on account from inventories