Rocky Bayou Golf Clubs, Inc., uses the LIFO inventory method and values its inventory using the lower-of-cost-or-market (LCM) rule. Rocky Bayou Golf Clubs, Inc., has the following account balances at December 31, 2018, before releasing its financial statements for the year: E (Click the icon to view the accounts.) The accountant for Rocky Bayou Golf Clubs, Inc., has determined that the replacement cost current market value) of the ending inventory as of December 31, 2018, is $51,100. Read the requirements .... Requirement 1. Which accounting principle or concept is most relevant to Rocky Bayou Golf Clubs, Inc.'s decision to use LCM? The is most relevant to Rocky Bayou Golf Clubs, Inc.'s decision to use LCM. Requirement 2. What value for Inventory would Rocky Bayou Golf Clubs, Inc., report on the balance sheet at December 31, 2018? According to the lower-of-cost-or-market rule, Rocky Bayou Golf Clubs, Inc., should report inventory on the December 31, 2018 balance sheet at Requirement 3. Prepare any adjusting journal entry required from the information given. (Record debits first, then credits. Exclude explanations from any journal entries. If no adjustment is needed, select "No entry required" on the first line of the Accounts column and leave all other cells blank.) Journal Entry Accounts Data table Date Debit Credit Dec 31 Cost of goods sold Sales revenue Inventory 39,000 Beg Bal End Bal 66,800 Bal 249,000 Bal 419,500 Rocky Bayou Golf Clubs, Inc., uses the LIFO inventory method and values its inventory using the lower-of-cost-or-market (LCM) rule. Rocky Bayou Golf Clubs, Inc., has the following account balances at December 31, 2018, before releasing its financial statements for the year: (Click the icon to view the accounts.) The accountant for Rocky Bayou Golf Clubs, Inc., has determined that the replacement cost (current market value) of the ending inventory as of December 31, 2018, is $51,100. Read the requirements . Requirement 1. Which accounting principle or concept is most relevant to Rocky Bayou Golf Clubs, Inc.'s decision to use LCM? The is most relevant to Rocky Bayou Golf Clubs, Inc.'s decision to use LCM. Requirement 2. What value for Inventory would Rocky Bayou Golf Clubs, Inc., report on the balance sheet at December 31, 2018? According to the lower-of-cost-or-market rule, Rocky Bayou Golf Clubs, Inc., should report inventory on the December 31, 2018 balance sheet at Requirement 3. Prepare any adjusting journal entry required from the information given. (Record debits first, then credits. Exclude explanations fr the first line of the Accounts column and leave all other cells blank.) 1. If no adjustment is needed, select "No entry required" on $39,000 Journal Entry Accounts Data table Date Debit Credit $51,100. Dec 31 Inventory $66,800 Joods sold Sales revenue Beg Bal 39,000 $249.000 End Bal 66,800 00 Bal 419,500 $419,500