Headland Company determined its ending inventory at cost and at LCNRV at December 31, 2020, December 31, 2021, and December 31, 2022, as shown below. Cost NRV 12/31/20 $650,200 $650,200 12/31/21 778,000 705,000 12/31/22 958,800 878,200 Your answer is correct. Prepare the journal entries required at December 31, 2021, and at December 31, 2022, assuming that a perpetual inventory system and the cost-of- goods-sold method of adjusting to LCNRV is used. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation 12/31/21 Cost of Goods Sold 73000 Allowance to Reduce Inventory to NRV 73000 12/31/22 Cost of Goods Sold 7600 Allowance to Reduce Inventory to NRV 7600 Your answer is partially correct. Vor Prepare the journal entries required at December 31, 2021, and at December 31, 2022, assuming that a perpetual inventory is recorded at cost and reduced to LCNRV using the loss method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation 12/31/21 Loss Due to Decline of Inventory to NRV 73000 Allowance to Reduce Inventory to NRV 73000 12/31/22 Inventory Over and Short 7600 Cost of Goods Sold 7600 e Textbook and Media required, select "No entry" for the account titles and enter for the amounts.) Debit Date Account Titles and Explanation 12/31/21 Loss Due to Decline of Inventory to NRV 73000 Allowance to Reduce Inventory to NRV 12/31/22 in 7600 Income Summary Inventory Inventory Over and Short e Textbo Wool Inventory Unrealized Holding Gain or Loss - Equity List Of A Unrealized Holding Gain or Loss -Income Loss Due to Decline of Inventory to NRV Recovery of Loss Inventory Allowance to Reduce Inventory to Market Allowance to Reduce Inventory to NRV Adjustment to Record Inventory at Cost Loss Due to Market Decline of Inventory Atte Ito Gradebook