Type or paste question here

Mundane Systems sells a single product. At December 31, the company's perpetual inventory records indicate 2,500 units on hand with a total cost (FIFO basis) of $155,000. The replacement cost of this product at this date is $35 per unit. Required: Prepare journal entries to record: (a) (2 points) the write-down of the inventory to the lower-of-cost-or-market value at December 31, and (b) (2 points) the cash sale of 100 units on January 4 at a retail price of $50 per unit