Sandy Cheeks and Patrick Star operate the Krusty Krab Memorabilia Shop, Inc.. ("KKMS") and perform their Lower of Cost or Market ("LCM") valuation by looking at each inventory item separately. During their month end inventory on December 31, 2019, they determined the following values for their inventory on December 31, 2019: ITEMS QUANTITY COST PER UNIT MARKET VALUE PER UNIT $8.00 $7.00 A. Squidward 1,000 T-Shirt B. Krusty Krab 500 mug C. Pearl's Tiara 750 $5.00 $6.75 $15.00 $10.00 D. Barnacle Boy's Beanie 300 $14.00 $8.00 E. Mr. Krab's Claw 500 $13.00 $20.00 F. Plankton's Seaweed 400 $9.00 $6.50 G. Sandy's Helmet 250 $35.00 $10.00 Part 1: DETERMINE THE INVENTORY ITEMS AND THE TOTAL DOLLAR AMOUNT OF ADJUSTMENT REQUIRED FOR EACH ITEM FOR KKMS' LCM ANALYSIS Part 2: PREPARE THE JOURNAL ENTRY, IN PROPER FORM, REQUIRED BY KKMS ON DECEMBER 31, 2019 TO REFLECT INVENTORY AT THE LOWER OF COST OR MARKET Date Account Debit Credit 1 1