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.

Total amount of write-down: ____

Journal entry worksheet

• Record inventory write down to LCM/NRV.

Note: Enter debits before credits.

\begin{tabular}{|c|c|c|c|c|c|} \hline Item & \begin{tabular}{l} Unit Cost \\ (FIFO) \end{tabular} & \begin{tabular}{l} NRV per \\ Item \end{tabular} & \begin{tabular}{c} Write-down \\ per Item \end{tabular} & \begin{tabular}{c} Quantity on \\ Hand \end{tabular} & \begin{tabular}{l} Total Write- \\ down \end{tabular} \\ \hline Alligator Armoires & 30 & 27 & & 15 & \\ \hline Bear Bureaus & 27 & 27 & & 15 & \\ \hline Cougar Credenzas & 21 & 27 & & 40 & \\ \hline Dingo Cribs & 23 & 23 & & 100 & \\ \hline Elephant Dressers & 34 & 32 & & 100 & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline Date & General Journal & Debit & Credit \\ \hline December 31 & & & \\ \hline & & & \\ \hline \end{tabular}