Lower of Cost and Net Realizable Value Meredith's Appliance Store has the following data for the items in its inventory at the end of the accounting period: Item Number of Units Historical Cost per Unit Net Realizable Value per Unit Window air conditioner 18 $194 $110 Dishwasher 30 240 380 27 415 405 19 215 180 Refrigerator Microwave Washer (clothing) Dryer (clothing) 32 195 248 21 197 245 Required: 1. Compute the carrying value of Meredith's ending inventory using the lower of cost and net realizable value (LCNRV) rule applied on an item-by-item basis. S 2. Prepare the journal entry required to value the inventory at LCNRV. (Reduced inventory to net realizable) 3. CONCEPTUAL CONNECTION: What is the conceptual justification for valuing inventory at LCNRV