PharoahCorporation had the following items in inventory as at December 31, 2020:

Item No.QuantityUnit

CostNRVA1100$4.20$5.50B475

2.202.10C21153.359.65D31058.157.65

Assume thatPharoahuses a perpetual inventory system, and that none of the inventory items can be grouped together for accounting purposes.

Prepare the year-end adjusting entry required to adjust to the lower of cost or net realizable value on an item-by-item basis usingthe direct method.(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 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

December 31, 2020