Problem (3) 15 Points

Assume that Zaras ending inventory includes two items whose values have recently changed as per the below

Required:

(A) Complete the table considering that Zara uses lower of cost or market/net realizable value rule for its accounting records.

Item	Cost per Item	Value per item (Market)	Quantity available
Winter jacket	$50	$35	1,000
Summer shirt	$80	$90	1,000

Item	Cost per Item	Value per item (Market)	Quantity available	Write- Down per Item	Total Write-down
Winter jacket	$50	$35	1,000
Summer shirt	$80	$90	1,000

(B) Write the necessary Journal Entry to record the write down.