Nutritional Foods reports merchandise inventory at the lower-of-cost-or-market. Prior to releasing its financial statements for the year ended March 31, 2017, Nutritional's E6-22 Applying the lower-of-cost-or-market rule to inventories preliminary income statement, before the year-end adjustments, appears as follows: NUTRITIONAL FOODS Income Statement (Partial) Year Ended March 31, 2017 Sales Revenue Cost of Goods Sold Gross Profit $ 117,000 45,000 $ 72,000 Nutritional has determined that the current replacement cost of ending merchandise inventory is $17,000. Cost is $20,000. Requirements 1. Journalize the adjusting entry for merchandise inventory, if any is required. 2. Prepare a revised partial income statement to show how Nutritional Foods should report sales, cost of goods sold, and gross profit