E8-19 pg. 506 The following information is for Takin Enterprises Ltd. Jan 31 Feb 28 Mar 31 Inventory at cost $25,000 $25,100 $29,000 Apr 30 $23,000 Inventory at the lower 24,500 17,600 22,600 17,300 of cost and net realisable value Purchases for the month Sales for the month 20,000 24,000 26,500 29,000 35,000 40,000 Instructions (1) Using the above information, prepare monthly income statements for Feb, March, and April. Show the inventory in the statement at cost, and show the fluctuations in NRV separately. Takin uses the allowance method. (2) Prepare the journal entry that is needed to establish the valuation account at Jan 31 and the entries to adjust it at the end of each month after that.