Some of A and B Electronios merchandise is gathering cust. It is now December 31, 2024, and the current replacement cost of the ending merchandise inventory $32,000 below the business's cost of the goods, which was $106,000. Before any adjustments at the end of the period, the company's cost of Goods Sold account has a balance of $400,000 Read the requirements Requirement 1. Journalize any required entries. (Record debits first then credits Select the explanation on the Inst line of the journal entry table. For situations that do not require an entry, make sure to select "No Entry Required in the first cell in the Accounts' column and leave all other cells blank.) The required journal entry would be: Requirements 1. Journalize any required entries. 2. At what amount should the company report merchandise inventory on the balance sheet? 3. At what amount should the company report cost of goods sold on the income statement? 4. Which accounting principle or concept is most relevant to this situation? Print Done ### Date Accounts and Explanation Debit Credit Dec. 31 Requirement 2. At what amount should the company report merchandise inventory on the balance sheet? A and B should report merchandise inventory on the balance sheet at Requirements. At what amount should the company report cost of goods sold on the income statement? A und B should report cost of goods sold on the income statement at Requirement 4. Which accounting principle or concept is most relevant to this situation? is the reason to account for merchandise inventory at accounting value of an asset ift appears unrealistically high direct accountants to decrease the Conservatism ild the iventc The consistency principle ild the The disclosure principle old on The materiality concept inciple is the reason to accounting value of an asset if it appears ur ntor average cost FIFO cost on LIFO cost the lower of cost or market situ at heet? Conservatism Consistency ent? Disclosure Materiality directs accountants to