As a result of its annual inventory count, Sarasota Corp. determined its ending inventory at cost and at lower of cost and net realizable value at December 31, 2019, and December 31, 2020. December 31, 2019, was Sarasota's first year end. This information is as follows: Cost Dec. 31, 2019 $321,200 Dec. 31, 2020 385,900 Lower of Cost and NRV $283,750 352,150 Prepare the journal entries required at December 31, 2019 and 2020, 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 o for the amounts.) Date Account Titles and Explanation Debit Credit 12/31/19 (To record ending inventory at LC and NRV) 12/31/20 (To transfer out beginning inventory balance) 12/31/20 (To record ending inventory at LC and NRV) Accounts Payable Accounts Receivable Allowance to Reduce Inventory to NRV Biological Assets Buildings Cash Cost of Goods Sold Equipment Interest Expense Interest Income Interest Payable Interest Receivable Inventory Inventory Over and Short Land Liability for Onerous Contracts Loss on Inventory Due to Decline in NRV Loss on Purchase Contracts No Entry Purchase Discounts Purchase Discounts Lost Purchase Returns and Allowances Purchases Raw Materials Realized Gain or Loss Rebate Receivable Recovery of Loss on Inventory Due to Decline in NRV Refund Liability Retained Earnings Sales Returns and Allowances Sales Revenue Supplies Expense Unrealized Gain or Loss Prepare the journal entries required at December 31, 2019 and 2020, 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.) Date Account Titles and Explanation Debit Credit 12/31/19 (To record ending inventory at cost) 12/31/19 (To write-down inventory to lower NRV) 12/31/20 (To transfer out beginning inventory balance) 12/31/20 (To record ending inventory at cost) 12/31/20 (To record recovery of write down of inventory to lower NRV) SHOW LIST OF ACCOUNTS Which of the two methods above provides the higher net income in each year