Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending inventory information about the five major items stocked for regular sale follows: Required:

1. 1-a. Complete the table column Write-Down per Item and then sum the final column.
2. 1-b. Compute the amount of the total write-down when the LCM/NRV rule is applied to each item.
3. 2. Prepare the journal entry Peterson Furniture Designs would record on December 31 to write down its inventory to LCM/NRV.

• Req 1A
• Req 1B
• Req 2

Complete the table column Write-Down per Item and then sum the final column.

Item	Unit Cost (FIFO)	NRV per Item	Write-down per Item	Quantity on Hand	Total Write-down
Alligator Armoires	$30	$24		50
Bear Bureaus	40	40		75
Cougar Credenzas	50	52		10
Dingo Cribs	30	30		30
Elephant Dressers	15	12		400