Some of E and S Electronics' merchandise is gathering dust. It is now December 31, 2015, and the current replacement cost of the ending merchandise inventory is $20,000 below the business's cost of the goods, which was $90,000. Before any adjustments at the end of the period, the company's Cost of Goods Sold account has a balance of $410,000. 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? Requirement 1. Journalize any required entries. (Record debits first, then credits. Explanations will appear on the last 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: Date Dec. 31 Accounts and Explanation Debit Credit