Problem 6-5A Lower of cost or market LO P2 A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Units Item Cost Market Car audio equipment Speakers 97 $105 342 Stereos 257 118 107 Amplifiers Subwoof ers Security equipment 323 93 102 48 201 59 Alarms 477 157 132 Locks 288 100 91 Cameras 209 317 329 Binocular equipment Tripods Stabilizers 77 182 91 167 104 112 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 questions 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. LCM applied to: Per Unit Total Individual Items Market Item Units Cost Market Cost Car audio equipment 342 $ 97 $ Speakers 105 Stereos 257 118 107 Amplifiers 323 93 102 Subwoofers 201 59 48 Security equipment Alarms 477 157 132 Locks 288 100 91 Cameras 209 317 329 Binocular equipment Tripods 182 77 91 Stabilizers 167 104 112 Total 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 1 Record LCM adjustment. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal