As a result of its annual inventory count, Blue Spruce Corp. determined its ending inventory at cost and at lower of cost and net realizable value at December 31, 2016, and December 31, 2017. This information is as follows: Lower of Cost and NRV Cost Dec. 31, 2016 $321,300 Dec. 31, 2017 386,000 $283,550 351,350 Prepare the journal entries required at December 31, 2016 and 2017, assuming that the inventory is recorded directly at the lower of cost and net realizable value and a periodic inventory system is used. Assume that cost was lower than NRV at December 31, 2015 (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 Date Account Titles and Explanation Debit Credit 12/31/16Inventory 283550 Cost of Goods Sold 283550 (To record inventory at cost) 12/31/17 [Cost of Goods Sold 283550 Inventory 283550 To reverse 2016 entry) 12/31/17 Inventory 351350 Cost of Goods Sold 351350 To record inventory at cost) Prepare the journal entries required at December 31, 2016 and 2017, assuming that the inventory is recorded at cost and an allowance account is adjusted at each year end under a periodic system. (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.) Date Account Titles and Explanation Debit Credit 12/31/16 To rcod 2016 inventory) 12/31/16 To record lower of cost or NRV) 12/31/17 (To clear prior year entry) 12/31/17 To record 2017 inventory) 12/31/17 To record lower of cost or NRV)