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Trillium Import has one of the largest selection of imported food products from Europe. Some of the food products are nearing the "best before date" and as such the wholesale price that Trillium charges its distributors will have to be reduced to move the merchandise. Trillium reported the following cost and net realizable value for inventory at December 31: Product Item Units Unit Cost NRV Pasta Brand 70 $106 Decicco Bari $92 $122 63 $95 Rustichella 51 $92 $102 Olive Varieties Liguria 91 $220 $284 Gaeta 121 $164 $164 Kalamatas 69 $90 $85 Calculate the total ending inventory balance for pasta brands and olive varieties using cost and the lower of cost or net realizable value for each item. Total cost Lower of cost or NRV Pasta Brand Decicco Bari Rustichella Olive Varieties Liguria Gaeta Kalamatas Total Prepare the adjusting journal entry for the inventory write-down on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit What effect does the entry have on the financial statements of Trillium Import? The entry has the effect of immediately net income

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