OAccounting%2012th%20Edition-%20Tracie%20L%20 Miller-Nobles%20( 1 ).pdf Learning objective 4 E6-21 Applying the lower-of-cost-or-market rule to merchandise inventories Clarmont Reources, which uses the ElFO inventory costing method, has the following account balances at May 31,2019, prior to releasing the financial statements for the year: Merchandise Invehtory, ending Cost of Goods Sold Net Sales Revenue 13,500 68,000 123,000 Clarmont has the May 31, 2019, ending merchandise inventory is $12,400. Requirements 1. Prepare any adjusting journal entry required from the information given. 2. What valuc would Clarmont report on the balance sheet at May 31, 2019, for mer- determined that the current replacement cost (current market value) of chandise inventory