Saltwater Trade Mart has recently had lackluster sales. The rate of inventory turnover has dropped, and the merchandise is gathering dust. At the same time, competition has forced Saltwater's suppliers to lower the prices that Saltwater will pay when it replaces its inventory. It is now December 31, 2018, and the net realizable value of Saltwater's ending inventory is $65,000 below what the company actually paid for the goods, which was $210,000. Before any adjustments at the end of the period, the Cost of Goods Sold account has a balance of $800,000 Read the requirements Saltwater should apply the first in, first out method to account for inventories. The net realizable value of ending inventory is less than Saltwater's actual cost, so Saltwater must write the inventory down to net realizable value. Requirement b. Give any journal entry required. (Record debits first, then credits. Exclude explanations from any journal entries. If no entry is required, select "No entry required" in the first cell in the "Accounts" column and leave all other cells blank.) Journal Entry Date Credit Accounts Debit 31 Inventory Dec Cost of Goods Sold Requirement c. At what amount should the company report Inventory on the balance sheet? Saltwater should report Inventory on the balance sheet at Requirement d. At what amount should the company report Cost of Goods Sold on the income statement