At 12/31/20, the end of Sunland Company's first year of business, inventory was $6,500 and $4,500 at cost and at market, respectively. Following is data relative to the 12/31/21 inventory of Jenner: Item Original Cost Per Unit $0.65 A A Replacement Cost $0.30 0.35 B 0.40 c 0.60 0.65 D 0.80 0.70 E 0.80 0.75 Selling price is $1.00/unit for all items. Disposal costs amount to 10% of selling price and a "normal" profit is 20% of selling price. There are 1,500 units of each item in the 12/31/21 inventory. Prepare the entry at 12/31/20 necessary to implement the lower-of-cost-or-market procedure assuming Sunland uses a contra account for its balance sheet. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation 12/31/20 Complete the last three columns in the 12/31/21 schedule below based upon the lower-of-cost-or-market rules. Item Original Cost Per Unit Replacement Cost Net Realizable Value Net Realizable Value Less Normal Profit A $0.65 $0.30 B 0.40 0.35 0.60 0.65 D D 0.80 0.70 E E 0.80 0.75 $ Prepare the entries necessary at 12/31/21 based on the data above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation 12/31/21 (To record cost of goods sold) 12/31/21 (To record profit/ loss) How are inventory losses disclosed on the income statement? entory losses can be disclosed separately below or they can be shown as part of