Assuming that Watts Corporation, using a perpetual inventory system, determined its ending inventory at cost and at a LCNRV at December 31, 2020 and December 31, 2021 as follows: 31.12.2021 $530.000 $430.000 Cost Net Realizable Value 31.12.2020 $485.000 $375.000 Instructions: According to the information given above; prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming that the inventory is recorded: (a) at cost, using the loss method and an allowance account. (b) at LCNRV, using the cost-of-goods-sold method and an allowance account. (c) Comment on which of the two methods (a) and (b) provides the higher net income in each year.