P6-64A (similar to) Freshwater Trade Mart has recently had lackluster sales. The rate of inventory turnover has dropped, and the merchandise is gathering dust. At the same time, competition has forced Freshwater's suppliers to lower the prices that Freshwater will pay when it replaces its inventory. It is now December 31, 2018, and the net realizable value of Freshwater's ending inventory is $92,000 below what the company actually paid for the goods, which was $210,000. Before any adjustments at the end of the period, the cost of Goods Sold account has a balance of $840,000 Read the requirements Freshwater's actual Requirement a. What accounting action should Freshwater take in this situation? Freshwater should apply the to account for inventories. The net realizable value of ending inventory is cost, so Freshwater must write the inventory to not realizable value