Nature Foods reports merchandise inventory at the lower-of-cost-or-market. Prior to releasing its financial statements for the year ended May 31, 2019, Nature's preliminary income statement, before the year-end adjustments, appears as follows: (Click the icon to view the preliminary income statement.) Nature has determined that the current replacement cost of ending merchandise inventory is $16,000. Cost is $18.000. Read the requirements. Requirement 1. Journalize the adjusting entry for merchandise inventory, if any is required. (Record debits first, then credits. Select the explanation on the last line of the joumal entry. For situations that do not require an entry, make sure to select "No entry required in the first cell in the 'Accounts" column and leave all other cells blank.) Date Accounts and Explanation Debit Credit i Data Table May Nature Foods Income Statement (Partial) Year Ended May 31, 2019 Sales Revenue Requirement 2. Prepare a revised partial Income statement to show how Nature Foods should report sales, cost of goods sold, and gross profit. $ 118,000 49,000 Cost of Goods Sold Nature Foods $ 67,000 Gross Profit Income Statement (Partial) Year Ended May 31, 2019 Sales Revenue Print Done i Requirements Cost of Goods Sold Gross Profit Choose from any list or enter any number in the input fields and then continue 1. Journalize the adjusting entry for merchandise inventory, if any is required. 2. Prepare a revised partial income statement to show how Nature Foods should report sales, cost of goods sold, and gross profit