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Bonnie Denim Company sells blue jeans. Last year, skinny jeans were fashionable; this year, relaxed-fit jeans are in style. The company has 625 units of skinny jeans with a cost of $30 per unit and a market value of $28 per unit. The inventory also includes 1,250 units of relaxed-fit jeans with a cost of $28 per unit and a market value of $32 per unit.
Problem 1: Prepare the journal entry, if any, that is required to adjust the Inventory account.
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