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, which was $102,000. Before any adjustments at the end of the period, the companys Cost of Goods Sold account has a balance of $405,000 Requirement 1. Journalize any required entries. (Rocord debits first, then credits Select the explanation on the last line of the journal entry table. For situations that do not roquire 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 joumal entry would be: Requirement 2. At what amount should the company report merchand se inventory on the balance sheet? L and M should report merchandise inventory on the balance sheet at Requirement 3. At what amount should the company report cost of goods sold on the income statement? L and M 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 directs accountants to decrease the accounting value of an asset if it appears unrealstically high