Sunland Corporation had the following items in inventory as at December 31, 2020:

Item No.			Quantity			Unit Cost			NRV
	A1		90			$3.75			$5.20
	B4		80			2.50			2.35
	C2		185			2.05			10.05
	D3		125			8.45			7.65

Assume that Sunland uses a perpetual inventory system, and that none of the inventory items can be grouped together for accounting purposes.

Prepare the year-end adjusting entry required to adjust to the lower of cost or net realizable value on an item-by-item basis using the direct method. (C