Some of E and S Electronics' merchandise is gathering dust. It is now December 31, 2024, and the current replacernent cost of the ending merchandise inventory is $20,000 below the business? cost of the goods, which was $104,000. Before any adjustments at the end of the penod, the company's Cost of Goods Sold account has a balance of $405,000. Read the Requirement 1. Joumalize arry required entries. (Record debis first, then credits. Solect the explanation on the last line of the journal entry table, For situations that do not require an entry, make sure 10 select "No Entry Required" in the Erst cell in the "Accounts" column and leave all ofter cells blank.) The required journal entry would be: Requirement 2. Al what amount should the company report mechandise itwentory on the balance sheet? Eand s should report merchandise invertiony on the balanco sheet at Requirement 3. Al what a mount should the company report cost of goods sold on the income statement? Eand 5 would repot cost of goods sold on the hocome statemert at Requirsment 4. Which acecourting principle oc concept is most reievant to this situason? is the reason to account for merchandiso invertary at en appears urredacticaly high. directs accountants to decrease the accounting valio of an asset if 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