At 12/31/17, the end of Windy Company's first year of business, inventory was $8,300 and $6,700 at cost and at market, respectively. Prepare the entry at 12/31/17 necessary to implement the LCNRVprocedure assuming Windy uses a contra account for its balance sheet.

At 12/31/18, inventory was $7,250 and $6,600 at cost and at market, respectively. Prepare the entry at 12/31/18 necessary to implement the LCNRV.

What are the journal entries for the two questions above?