Purple Corp. had a fire sprinkler go off in a warehouse, damaging $1,900$ units of its regular inventory. Information with respect to the units:

Cost, $$54$ per unit

Regular selling price, $$87$ per unit

Estimated selling price once repaired, $$36$ per unit

Estimated repair cost, $$15\mathrm{.}60$ per unit

Variable selling cost, $$3\mathrm{.}40$ per unitRequired:

Determine the value to be assigned to each damaged unit.

Assume that the company segregates damaged inventory in a separate account. Provide the journal entry. $($If no entry is required

for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Journal entry worksheet

$1$

Record the write down of damaged inventory.