Scotch and Company only sells one type of inventory item-a specialty metal alloy. On January 1 of the current year, Scotch has 1400 lbs of the metal on hand. Scotch purchases 13300 pounds during the year and sells 11570 pounds during the year. Assume that using FIFO, the cost assigned to the ending inventory is $19 per pound. Before any consideration of a possible adjustment for lower-of-cost-or realizable value, what is the reported amount (dollar amount, of course!) of inventory on the balance sheet? Assume that due to a decreased demand for the metal there is an over supply and that as of the balance sheet date, the net realizable value of the inventory is $11 per pound. 2.What will Scotch report as inventory on the balance sheet? 3. Record the necessary adjusting entry that would result from this information. Enter positive numbers as I have provided the parentheses to show the accounts are decreasing. Assets Liabilities Equity Retained earnings Inventory CHECK