Sandhill Corporation had the following items in inventory as at December 31, 2023: Item No. A1 B4 C2 D3 Quantity 110 110 160 120 Unit Cost $3.40 2.00 8.40 7.60 NRV $3.90 1.40 10.10 7.50 Assume that Sandhill uses a periodic inventory system, and that none of the inventory items can be grouped together for accounting purposes. The opening inventory on January 1, 2023, was $3,200 in total.

Sandhill Corporation had the following items in inventory as at December 31, 2023: Assume that Sandhill uses a periodic inventory system, and that none of the inventory items can be grouped together for accounting purposes. The opening inventory on January 1,2023 , was $3,200 in total. Prepare the year-end adjusting entries required to adjust to the lower of cost or net realizable value using the direct method. (Credit occount titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the occount titles and enter 0 for the amounts. List all debit entries before credit entries.)