Some of $L$ and M Electronics' merchandise is gathering dust It is now December $31,2024,$ and the current replacement cost of the ending merchandise inventory is $$32,000$ below the business's cost of the goods, whi $$102,000.$ Before any adjustments at the end of the period, the company's Cost of Goods Sold account has a balance of $$412,000.$

Read the requirements.

Requirement $1.$ Journalize any required entries. $($Record debits first, then credits. Select the explanation on last line of the joumal 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: