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, 2022, and December 31, 2023. December 31, 2022, was Sarasota's first year end. This information is as follows: Your answer is correct. 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.) 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.) 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.) (To record ending inventory at cost) 12/31/22 (To write down inventory to lower NRV) 12/31/23 (To transfer out beginning inventory balance) 12/31/23 (To record ending inventory at cost) 12/31/23 (To record recovery of write down of inventory to lower NRV) Which of the two methods above provides the higher net income in each year? Both methods have the same effect on net income. The method in which inventory is recorded directly at the lower of cost and net realizable value is higher. The method in which inventory is recorded at cost and an allowance account is adjusted at each year end is higher