Cost Lower of Cost and NRV

Dec. $31,2019$ $$321,000$ $$283,250$

Dec. $31,2020385,000351,250$

Required:

a$.$ 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.

b$.$ 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.