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I have the answers to the question I just need you to show your work and provide explanations. Thank you! TER At 12/31/20, the end

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I have the answers to the question I just need you to show your work and provide explanations. Thank you! TER At 12/31/20, the end of Jenner Company's first year of business, inventory was $6,100 and $5,100 at cost and at market, respectively Following is data relative to the 12/31/21 inventory of Jenner Original Net Net Realizable Appropriate Cost Replacement Realizable Value Less Inventory Per Unit Cost Value Normal Profit Value $.65 45 Selling price is $1.00/unit for all items Disposal costs amount to 10% of selling price and a hommat profitis 30% of selling price. There are 1,500 units of each item in the 12/3121 nventory Instructions (a) Prepare the entry at 12/31/20 necessary to implement the lower-of-cost-or-market procedure assuming Jenner uses a contra account for its balance sheet. (b) Complete the last three columns in the 12/3121 schedule above based upon the lower.o.costo-market rules (c) Prepare the entry(ies) necessary at 12/31/21 based on the data above (d) How are inventory losses disclosed on the income statement? ....... 1,000 1,000 (a) Loss Due to Decline of Inventory to Market Allowance to Reduce Inventory to Market... Original Net Cost Replacement Realizable Item Per Unit Cost Value $65 Net Realizable Value Less Normal Profit $.60 Appropriate Inventory Value $.60 90 -70 TITITI MO 75 .75 65 90 .85 $3,45 *$3 25 * 1,500 = $4.875 (c) Allowance to Reduce Inventory to Market Cost of Goods Sold Loss Due to Decline of Inventory to Market Allowance to Reduce Inventory to Market (Cost of inventory at 12/31/20 = $4,875) OR A student can record a recovery of $700. (d) Inventory losses can be disclosed separately (below gross profit in operating expenses) or they can be shown as part of cost of goods sold

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