Nutritional Foods reports merchandise inventory at the lower-of-cost-or-market. Prior to releasing its financial statements for the year ended July 31, 2025, Nutritional's preliminary income statement, before the year-end adjustments, appears as follows: (Click the icon to view the preliminary income statement.) Nutritional has determined that the current replacement cost of ending merchandise inventory is $20,000. Cost is $22,000. 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 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.) Date Jul. 31 Accounts and Explanation Debit Credit