Sedato Company is in its first year and follows the practice of pricing its inventory of LCNRV, on an individual-item basis. Items and quantities below are what is left in the companys ending inventory.

ITEM NO.	QUANTITY	COST/UNIT	ESTIMATED SELLING PRICE	COST TO COMPLETE AND SELL
1320	1,200	$3.20	$4.50	$1.60
1333	900	$2.70	$3.40	$1.00
1426	800	$4.50	$5.00	$1.40
1437	1,000	$3.60	$3.20	$1.35
1510	700	$2.25	$3.25	$1.40
1522	500	$3.00	$3.90	$0.80
1573	3000	$1.80	$2.50	$1.20
1626	1000	$4.70	$6.00	$1.50

a. From the information above, determine the amount of Sedato Company inventory.

b. From your work in part (a), prepare the journal entry required at the end of the year, assuming that the company uses a perpetual inventory system using the cost-of-goods-sold method.

c. Assume that Sedato managed to sell all the items in the table above at a total of $23,000 in January the next year. Prepare the journal entry to reduce the allowance made at the end of last year.