Outdoor Company uses the perpetual inventory system and its inventory consists of four products as at January 31, 2022. Selected information is provided below.

Required

a) Calculate the inventory value that should be reported on January 31, 2022, using the LCNRV applied on an individual item basis.

Do not enter dollar signs or commas in the input boxes.

Product	Number of Units	Cost (per unit)	NRV (per unit)	LCNRV (per unit)
1	40	$91	$116	$Answer
2	40	$83	$78	$Answer
3	20	$68	$43	$Answer
4	5	$108	$175	$Answer
Inventory Value Total		$Answer	$Answer

LCNRV Inventory Value =$Answer

b) Using the results from part a), prepare the journal entry to adjust inventory to LCNRV.

Date	Account Title and Explanation	Debit	Credit
2022
Jan 31	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldEquipmentInsurance ExpenseInterest ExpenseInterest PayableMerchandise InventoryPrepaid InsurancePrepaid RentRent ExpenseSales Revenue	Answer
	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldEquipmentInsurance ExpenseInterest ExpenseInterest PayableMerchandise InventoryPrepaid InsurancePrepaid RentRent ExpenseSales Revenue		Answer
	Adjust inventory to LCNRV