On December 31, 20X7, Varsity Motors (VM) Had an Inventory

On December 31, 20X7, Varsity Motors (VM) had an inventory of five different types of oil well parts. Due to economic downturn and declining demand for oil, the market prices for oil well parts have declined. The year-end unit costs (determined by applying the weighted-average cost formula), estimated unit selling prices, estimated costs to sell, and net realizable values for each of the items are presented below. The determination of the amount of inventories to be reported in the statement of financial position is presented below. VM tests its inventory for impairment on an item-by-item basis.
$$\begin{array} { | l | c | c | c | l | l | } \hline \text { Item } & \begin{array} { l } \text { Original } \\\text { Cost }\end{array} & \begin{array} { l } \text { Selling } \\\text { Price }\end{array} & \begin{array} { l } \text { Estimated } \\\text { Cost to sell }\end{array} & \text { NRV } & \text { LCNRV } \\\hline \mathrm { A } & \$ 6,000 & \$ 5,100 & \$ 500 & & \\\hline \mathrm { B } & 4,500 & 4,300 & 100 & & \\\hline \mathrm { C } & 3,900 & 4,000 & 50 & & \\\hline \mathrm { D } & 1,800 & 1,600 & 75 & & \\\hline \text { E } & 1,400 & 1,450 & 150 & & \\\hline \text { Total } & \$ 17,600 & & & & \\\hline\end{array}$$
-If instead of testing its inventory for impairment on an item-by-item basis, VM decided that this inventory meets the specific criteria for impairment testing as a group, What journal entry is made on December 31, 20X7 to record the adjustment?