Sunland Company uses a perpetual inventory system and the FIFO cost formula for valuing inventory. The company is now in the process of comparing the cost of its inventory with its net realizable value. The following data are available at Sunland Companys year end, December 31:

		Units			Unit Cost			Net Realizable Value per Unit
Clothing		88			$7			$6
Jewellery		75			20			28
Greeting cards		50			2			3
Stuffed toys		52			13			38

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Determine the lower of cost and net realizable value of the ending inventory assuming Sunland Company applies LCNRV on individual items.

Lower of cost and net realizable value

$enter the Lower of cost and net realizable value in dollars

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List of Accounts

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Prepare the journal entry required, if any, to record the adjustment from cost to net realizable value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title to write down inventory to lower net realizable value	enter a debit amount	enter a credit amount
enter an account title to write down inventory to lower net realizable value	enter a debit amount	enter a credit amount
(To write down inventory to lower net realizable value.)