You are auditing Donny's Fencing Needs Inc. as of December 31. 2019. The inventory in the general ledger for Fence #901 shows 33,500 sections at $35 per section for a total of $1,172,500. When you look at the most recent invoices for the fence sections, you see the following:

Inventory Number Date Quantity Unit Price Total

1234 11/15/19 20,000 $25 $500,000

3456 11/30/19 10,000 $28 $280,000

5678 12/15/19 18,000 $31 $558,000

7891 01/15/20 25,000 $34 $850,000

Assuming Donny's Fencing Needs Inc. utilizes the FIFO method of pricing inventory, determine the adjusting entry, if any, Donny's Fencing Needs should make to correct its 2019 year-end inventory for Fence #901. (10 POINTS)