Problem 5-5A Lower of cost or market LO P2 A physical inventory of Liverpool Company taken at December 31 reveals the following Per Unit Item Units Cost Market Car audio equipment Speakers 355 $110 $118 Stereos 270 131 121 Amplifiers 336 106 115 Subwoofers 214 72 62 Security equipment Alarms 490 170 160 Locks 301 113 183 Cameras 222 332 342 Binocular equipment Tripods 195 94 104 Stabilizers 180 115 125 Required: 1. Calculate the lower of cost or market for the inventory applied separately to each item. 2. If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the lower of cost or market for the inventory applied separately to each item. Per Unit Total Item Units Cost Market Cost Market Car audio equipment Speakers 355 $ 110 $ 118 Stereos 270 131 121 Amplifiers 330 100 115 Subwoofers 214 72 82 Security equipment Alarms 400 170 Locks 301 113 Cameras 222 332 228 100 103 342 Binocular equipment Tripods 105 Stabilizers 88 04 104 180 115 125 2 Total LCM applied to Individual Items Required 2 > Required: 1. Calculate the lower of cost or market for the inventory applied separately to each item. 2. If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account. Complete this question by entering your answers in the tabs below. Required 1 Required 2 If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account. View transaction list Journal entry worksheet Record LCM adjustment. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit Record entry Clear entry Required 1 View general journal