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.