Problem 9-05 a-b Flounder Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2020. Unit Cost Item A Quantity 1,600 1,300 1,500 1,500 1,900 Replacement Cost/Unit $8.82 8.30 5.67 Estimated Selling Price/Unit $11.03 9.87 7.56 6.62 7.04 Normal Profit Margin/Unit $1.89 1.26 0.63 $7.88 8.61 5.88 3.99 Completion & Disposal Cost/Unit $1.58 0.95 1.21 0.84 B 4.41 1.58 E 6.72 6.62 0.74 1.05 Greg Forda is an accounting clerk in the accounting department of Flounder Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant. Your answer is partially correct. Try again. Calculate the lower-of-cost-or-market using the individual-item approach. Lower-of-Cost-or-Market (Per unit basis) X Item A 7.56 x Item B 7.66 X Item C 5.67 Item D 3.99 X Item E 5.25 Your answer is partially correct. Try again. Show the journal entry he will need to make in order to write down the ending inventory from cost to market. (Credit account titles are automatically indented when 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.) Debit Credit Account Titles and Explanation Cost of Goods sold Method: Cost of Goods Sold 4780 Inventory 4780 The Loss method: Loss Due to Decline of Invi 4780