Violet Company's records reported an inventory cost of $15,000 and a net realizable value of $14,700 at December 31, 2019.Now, Violet Company is preparing the annual financial statements dated December 31, 2020. Information about inventory stocked for regular sale follows:

QuantityUnit CostNet Realizable Value

Itemon HandWhen Acquiredat year end

A100$20 each$2,000$20 each$2,000

B8035 each 2,80040 each3,200

C20040 each 8,00036 each7,200

Instructions

Assume Violet values inventory at the lower of cost and market on an item by item basis and uses the allowance method, prepare the journal entry to record any adjustments required at the end of 2020.