Valley Source Foods reports merchandise inventory at the lower-of-cost-or-market. Prior to releasing its financial statements for the year ended August 31, 2025. Valley Source's preliminary income statement, before the year-end adjustments, appears as follows: (Click the icon to view the preliminary income statement.) Valley Source has determined that the current replacement cost of ending merchandise inventory is $17,000. Cost is $18,000. Read the requirements Requirement 1. Journalize the adjusting entry for merchandise inventory, if any is required. (Record debits first, then credits. Select the explanation on the last line of the journal entry. For situations that do not require an entry, make sure to select "No entry required" in the first cell in the "Accounts" column and leave all other cells blank.) Date Aug. 31 Accounts and Explanation Debit Credit Data table Valley Source Foods Income Statement (Partial) Year Ended August 31, 2025 Net Sales Revenue Cost of Goods Sold Gross Profit $ 122,000 49,000 73,000 Print Done Clear all Check answer Help me solve this Etext pages Get more help