Corrs Company began operations in 2016 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2016, and December 31, 2017.

This information is presented below.

Cost Lower-of-Cost-or-Market

12/31/16 $356,000 $327,000 12/31/17 420,000 395,000

Instructions

(a) Prepare the journal entries required at December 31, 2016, and December 31, 2017, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used.