Some of M and T Electronics' merchandise is gathering dust. It is now December 31. 2015. and the current replacement cost of the ending merchandise inventory is 520,000 below the business's costol the goods. which was $1 come Before any adjustments atthe end of the period, the company's Cost of Goods Sold account has a balance cl $410,000. Requirements 1. Joumalize any required entries. 2. At what amount should the company report merchandise inventory on the balance sheet? 1 At what amount should the company report cost of goods sold on the income statement? All Which accounting principle or concept is most relevant to this situation? Requirement 1. Journalize any required entries. (Record debits rstI 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 rst cell in the 'Acoounts' column and leave all other cel s blank.) The required joumai entry would be: Date Accounts and Explanation Debit Credit Dec. 31 Requirement 2. At what amount should the company report merchandise inventory on the balance sheet? M and Tshouio report inventory on the balance sheet at $D. Requirement 1 At what amount should the company report cost of goods sold on the income statement? M and Tshouid report cost ofgoods sold on the income statement at SD. Requirement It Which accounting principle or concept is most relevant to this situation? 'r is the reason to amount for inventory at Y . T directs accountants to decrease the acmunting vaiue ofan asset it it appears unreal isticailv hiah