As a result of its annual inventory count, Martinez Corp. determined its ending inventory at cost and at lower of cost and net realizableAs a result of its annual inventory count, Martinez Corp. determined its ending inventory at cost and at lower of cost and net realizable

value at December $31,2022,$ and December $31,2023.$ December $31,2022,$ was Martinez's first year end. This information is as

follows:

Prepare the journal entries required at December $31,2022$ and $2023,$ 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 $0$ for the amounts. List

all debit entries before credit entries.$)$

Date Account Titles and Explanation

Debit

Credit

$\frac{12}{31}\frac{?}{22}$

$($To record ending inventory at cost$)$

$\frac{12}{31}\frac{?}{22}$

$($To write down inventory to lower NRV$)$

$\frac{12}{31}\frac{?}{23}$

value at December $31,2022,$ and December $31,2023.$ December $31,2022,$ was Martinez's first year end. This information is as

follows: