During the 2013 audit of Namtip Ltd. you have tested the internal controls over inventory, observed the physical inventory taken on December 31, 2013, and performed various follow-up procedures related to the physical. Now you are performing costing (pricing) tests on a sample of the ending inventory. One of the items you selected for cost (price) testing is orange widget, a significant part in the manufacture of Namtip’s main products. You noted that the 12/31/13 inventory record of orange widgets consisted of 1,263 units (you previously verified that this agreed to the quantity indicated from the physical inventory) at $782 each for a total of $987,666. Assume you determined that the net realizable value for the orange widgets is $775 per unit, while the net realizable value less a normal margin is $745 per unit. Prepare the adjusting entry, in proper form without an explanation, for the proper presentation of orange widgets at December 31, 2013 assuming you examined a vendor invoice dated January 3, 2014 for 500 orange widgets at $750 each for a total of $375,000. The units were ordered on January 2, 2014 and received on January 6, 2014.