P6-5B. Lower of cost and net realizable value rule (Learning Objective 4) 10-15 min. Because of a nationwide recession, Computer World Inc.'s merchandise inventory is gathering dust. It is now October 31, 2024, and the $66,800 that Computer World Inc. paid for its ending inventory is $2,300 higher than current replacement cost. Before any adjustments at the end of the period, Computer World Inc.'s Cost of Goods Sold account has a balance of $587,400. Computer World Inc. uses the lower of cost and net realizable value to value its ending inventory. Requirements, 1. What amount should Computer World Inc. report for inventory on the statement of financial position? 2. What amount should Computer World Inc. report for cost of goods sold? 3. Journalize any required entries.