Nature Foods reports merchandise inventory at the lower-of-cost-or-market. Prior to releasing its financial statements for the year ended December 31, 2018, 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 $17,500. Cost is $19,000. Read the requirements Requirement 1. Joumalize the adjusting entry for merchandise inventory. If any is required. (Record debits first, then credits Select the explanation on the last line of the journal 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.) Debit Credit Date Accounts and Explanation Dec Data Table gen notre Selec scounts Ac Nature Foods Income Statement (Partial) Year Ended December 31, 2019 Sales Revenue $ 117,500 48,000 Cost of Goods Sold Gross Profit $ 69,500 partial in bold, and gro Print Done Te Foods tement Par ver Requirement 2. Prepare a revised partial income statement to show how Nature Foods should report sales, cost of goods sold and gross profit. Nature Foods Income Statement (Partial) tT Year Ended December 31, 2019 ns) Sales Revenue Cost of Goods Sold Gross Profit