Lush Garden supplies uses a perpetual inventory system. Lush Garden supplies has these account balaces at July 31, 20X6, prior to making the year end adjustments: Inventory (Beg bal: 11,500, End bal: 18,000), COGS (bal: 76,000), Sales Revenue (161,000).

A year ago, the NRV (net realizable value) cost of ending inventory was 12,000 which exceeded cost of 11,500. Lush Garden Supplies has determined that the NRV cost of the July 31, 20X6, ending inventory is 14,800. Prepare the company's 20X6 Income Statement through gross profit to show how the company would apply the net realizable value to its inventories.