valuation method report the raw materials inventory on its balance sheet using the lower of cost of market 2. Record the general journal entry needed the next year on June 30, 2008, assuming the following: The balance of the Raw Materials inventory account is $696,210, the market value is $683,510, the company uses the lower of cost or market valuation method. 3. At the end of the following year, June 30, 2009, the balance of the Raw Materials in ventory account is $675,480 and the market value is $679,350. Record the necessary journal entry, assuming that the company still uses the lower of cost or market method of valuing its inventory. 4. Show the balance sheet presentation for the raw materials inventory and related accounts for 2007, 2008, and 2009, (4.6A) Prepare an income statement. (Obj. 7). The fiscal year for the Wellesley Corporation ends on January 31, 2007. Use the data below to prepare an income statement for the cur- rent year. Sales Sales Returns and Allowances Finished Goods, February 1, 2006 Finished Goods, January 31, 2007 Cost of Goods Manufactured Selling Expenses Administrative Expenses Loss on Reduction of Inventory to Market Provision for Income Taxes $1,458,740 96,422 95,820 99,240 844,560 192,715 120,122 19,365 99,590