The inventories of berry Company for the years 2016 and 2017 are as following:

Berry uses the periodic inventory method.
Required:
1. Assume the inventory that exited at the end of 2016 was sold in 2017. Perpetual the necessary journal entries at the end of each year to record the correct inventory valuation Berry uses the:
a. direct method
b. allowance method
2. Next Level Refer to your answer for E8-4. How does the use of a periodic or perpetual inventory system affect the valuation of inventory?

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Cost Market January 1, 2016 December 31,2016 December 31, 2017 $10,000 $1,000 11,500 14,000 13,000 15,000