Walmart uses a perpetual inventory system and has the following account balances as at December 31, 2023 before any year end adjusting entries:

Inventory $15,000

Cost of Goods Sold $82,000

Sales Revenue $140,000

Walmart determines that the net realizable value of the December 31, 2023 ending inventory is $13,750.

Prepare any adjusting journal entries required at year end and calculate the gross profit that Walmart will report on their income statement for the year.