Richmond has determined that the current replacement cost (current market value) of the January 31, 2025, ending merchandise inventory is $11,800. Richmond Resources, which uses the FIFO inventory costing method, has the following account balances at January 31, 2025, prior to releasing the financial statements for the year: Merchandise Inventory, ending $ 15,000 Cost of Goods Sold 74,000 Net Sales Revenue 124,000 Read the requirements. Requirement 1. Prepare any adjusting journal entry required from the given information. (Record debits first, then credits. Select the explanation on the last line of the journal entry. For situations that do not require an entry, make sure to select "No entry required" in the first cell in the "Accounts" column and leave all other cells blank.) Date Credit Jan. 31 Accounts and Explanation Cost of Goods Sold Merchandise Inventory Debit 3,200 3,200 To write merchandise inventory down to market value. Requirement 2. What value would Richmond report on the balance sheet at January 31, 2025, for merchandise inventory? According to the rule, Richmond Resources should report inventory on the January 31 balance sheet at Richmond Resources, which uses the FIFO inventory costing method, has the following acco Dalances at January 31, 2025, prior to releasing the financial statements for the year: Merchandise Inventory, ending 15,000 Cost of Goods Sold 74,000 Net Sales Revenue 124,000 UCVIL Muuuunil ITU LapiallaLIVIT 3,20 Jan. 31 Cos consistency estimating-ending-inventory FIFO narket value. lower-of-cost-or-market materiality Requirement 2. the balance sheet at January 31, 20 This rule, Richmond Resources should report inv According to the