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Some of L and M Electronics' merchandise is gathering dust. It is now December 31,2024 , and the current replacement cost of the ending merchandise inventory is $32,000 below the business's cost of the goods, which was \$102,000. Before any adjustments at the end of the period, the company's Cost of Goods Sold account has a balance of $405,000 Requirement 1. Journalize any required entries. (Record debis first, then credits. Select the explanation on the last line of the joumal entry table, For situations that do not require an entry, make sure to select "No Entry Required" in the first cell in the "Accounts" column and leave all other cells blank.) The required journat entry would be: Requirement 2. At what amount should the company report merchandise inventory on the balance sheet? L and M should report merchandise inventory on the balance sheet at Requirement 3. At what amount should the company report cost of goods sold on the income statement? L and M should report cost of goods sold on the income statement at Requirement 4. Which accounting principle or concept is most relevant to this situation? is the reason to account for merchandise inventory at directs accountants to decrease the accounting value of an asset if it appears unrealistically high. Data table Requirement 2. State whether each year's net income-before your corrections-is understated or overstated, and indicate the amount of the understatement or overstatement Requirement 3. Compute the inventory turnover and days' sales in inventory using the corrected income statement for the three years. (Round ail numbers to two decimals.) Select the labels and enter the amounts to compute inventory tumover for each year. (Round your answers to two decimal places, XX )

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