Last year bell-bottom jeans were fashionable and this year bootcut jeans are. A retail company's inventory has 550 bell-bottom jeans that cost $19.25 each and could be replaced for $16.75. The inventory also includes 1,175 bootcut jeans that cost $17.75 each and could be replaced for $20.75. Prepare the journal entry that would be used to make the adjustment, and show the effects of the adjustment on the accounting equation.