Part 1: Compute the lower of cost or market for the inventory applied separately to each item.

Part 2: If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment

A physical inventory of Liverpool Company takenon December 31, 2020 reveals the following: Cost per Unit Market Value/Unit Units 90 98 345 $ 260 326 111 100 86 95 204 52 41 Item Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alarms Locks Cameras Binocular equipment Tripods Stabilizers 480 150 125 291 93 84 212 310 322 185 70 84 170 97 105 Part 2: If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account Liverpool Company General Journal For the month of December, 2020 Date ACCCounts Debits Credits