- DUU UUU ULLS E9.4 (101) (LCNRV-Journal Entries) Dover Company began operations in 2020 and determined its ending inventory at cost and at LCNRV at December 31, 2020, and December 31, 2021. This informa- tion is presented below. Cost Net Realizable Value 12/31/20 $346,000 $322,000 12/31/21 410,000 390,000 Instructions a. Prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method. b. Prepare journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual system using the loss method. c. Which of the two methods above provides the higher net income in each year