Pharoah Company uses a perpetual inventory system and the FIFO cost formula for valuing inventory. The company is now in the process of comparing the cost of its inventory with its net realizable value. The following data are available at Pharoah Company's year end. December 31: Net Realizable Value Units per Unit 98 Unit Cost $7 20 $6 77 Clothing Jewellery Greeting cards Stuffed toys 44 1 2 52 11 39 Your answer is correct. Determine the lower of cost and net realizable value of the ending inventory assuming Pharoah Company applies LCNRV on individual items. Determine the lower of cost and net realizable value of the ending inventory assuming Pharoah Company applies LCNRV on individual items. Lower of cost and net realizable value 2744 Your answer is partially correct. Prepare the journal entry required, if any, to record the adjustment from cost to net realizable value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Credit Account Titles and Explanation Cost of Goods Sold 98 Merchandise Inventory 98 (To write down inventory to lower net realizable value.)