ONLY ANSWER WHEN YOU ARE $100\%$ SURE YOUR ANSWER IS CORRECT. AND IT IS NOT $-$NO ENTRY REQUIRED$-$

DO NOT ANSWER IF YOU DON KNOW HOW, I WILL LEAVE A THUMB DOWN AND REPORT TO CHEGG.

Li Corp. purchased a container load of antiques for resale at an invoice cost of $$1,500,000.$ The goods were paid for when they were shipped in early June. The container arrived in Canada at the end of August, and then at Li's location, by rail, at the end of September. The goods were then available for sale. Freight costs of $$157,500$ were paid in October. Li has recorded $$112,500$ of total interest expense from $$2,500,000$ of general borrowing over the year.

Required:

Prepare the adjusting journal entry to capitalize borrowing costs on inventory at year$-$end December $31.$

Record entry to capitalize borrowing cost.