As 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 directly at the

lower of cost and net realizable value and a periodic inventory system is used. $($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 LC and NRV$)$

$12/31/23$

$($To transfer out beginning inventory balance$)$

$12/31/23$