Required information [The following information applies to the questions displayed below.] A local Chevrolet dealership carries the following types of vehicles Unit Unit Quantity Inventory Items Cost NRV Vans 2 $26,000 17,800 $24,000 16,800 Trucks A da dans 16,800 19,800 ans Sports cars 7 36,000 29,600 39,000 SUVS 7 27,000 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVS, vans, and trucks Required: 1. Compute the total cost of the entire inventory. Total cost 2. Determine whether each inventory item would be reported at cost or net realizable value (NRV). Enter the Cost per Unit for the "Lower of Cost and net realizable value" and then multiply the quantity of each inventory item by the appropriate cost or NRV amount and enter it in the Total column. Lower of Cost Inventory Items Cost or NRV Total and NRV per unit Vans Trucks 2-door sedans 4-door sedans Sports cars SUVS Total 3. Prepare necessary entry to write down inventory from cost to net realizable value. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the adjustment for inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal 4. The write-down of inventory from cost to net realizable value reduces total assets and increases total expenses, leading to lower net income and lower retained earnings. True or False True False