Wire Solutions Company's income statement for the month ended August 31, 2017, reported the following data:

Before the financial statements were released, it was discovered that the current net realizable value of ending inventory was $96,000.
1. Journalize the entry to apply the lower-of-cost-and-net-realizable-value rule to the inventory.
2. Prepare a revised income statement to adjust the preceding income statement to apply the lower-of-cost-and-net-realizable-value rule to Wire Solutions Company's inventory. Also show the relevant portion of Wire Solutions Company's balance sheet.

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Income Statement Sales revenue Cost of goods sold: Beginning inventory Net purchases Cost of goods available for sale Ending inventory Cost of goods sold $ 82,000 243,700 325,700 105,700 220,000 $100,000 Gross margin