Additional Problem 5 Blossom Corporation had the following items in inventory as at December 31, 2020: Item No. Quantity A1 110 B4 130 C2 160 D3 180 Unit Cost $2.90 2.10 8.10 7.10 NRV $3.40 2.00 9.20 6.70 Assume that Blossom uses a periodic inventory system, and that none of the inventory items can be grouped together for accounting purposes. The opening inventory on January 1, 2020, was $3,200 in total. Prepare the year-end adjusting entries required to adjust to the lower of cost or net realizable value using the direct method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Direct Method: Date Account Titles and Explanation Debit Credit December 31, 2020 COGS Inventory (To transfer out beginning inventory balance) December 31, 2020 Inventory Purchases (To record ending inventory at LC and NRV) Prepare the year-end adjusting entries required to adjust to the lower of cost or net realizable value using the indirect method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Indirect Method: Date Account Titles and Explanation Debit Credit December 31, 2020 COGS Inventory (To transfer out beginning inventory balance) December 31, 2020 Inventory Cogs (To record ending inventory at cost) 1 December 31, 2020 Allowance to Reduce Inver Inventory (To write-down inventory to lower NRV)