Instructions Chart of Accounts General Journal Next Level Instructions The following are the inventories for the years 2019, 2020 and 2021 for Parry Company Cost NRV January 1, 2019 $50,000 $50,000 December 31, 2019 04.000 60,000 71,000 70,000 December 31, 2020 December 31, 2021 75,000 78,000 Required: 1. Assume the inventory that existed at the end of each year was sold in the subsequent year. Prepare fournal entries to record the lower of cont or net realizable value for each of the following alternatives aallowance method, perpetual inventory system b. direct method, perpetual inventory system 2 Next Level Explain any differences in inventory valuation and income between the two methods. General Journal Shaded cells have feedback ta Assume Parry uses the allowance method and a perpetual inventory system Prepare the necessary Journal entries to record 1. the correct Inventory valuation on December 31, 2019 2. the reduction in inventory when the inventory from December 31, 2019 is sold during 2020 3. the correct inventory valuation on December 31, 2020 4 the reduction in inventory when the inventory from December 31, 2020 is sold during 2021 5 the correct inventory valuation on December 31, 2021 (if necessary) General Journal Instructions All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. PAGE 1 GENERAL JOURNAL Score: 46/125 DATE Dec 16 POST RET DEBIT ACCOUNT TITLE Loss on Write-Down of Inventory CREDIT 1 4,000.00 2 4,000.00 3 Allowance to Reduce Inventory to NRV Dec 17 Loss on Write-Down of Inventory Allowance to Reduce Inventory to NRV 1,000.00 1,000.00 5 2a. Enter the effect on income with the write down of inventory at December 31 each year under each method. Additional Instructions Effect on Income Direct Method Allowance Method December 31, 2019 $ $ December 31, 2020 $ $ December 31, 2021 $ $ GE Points: 26. Enter the value of inventory at December 31 each year under each method. Direct Method Allowance Method Inventory valuation December 31, 2019 $ $ December 31, 2020 S $ December 31, 2021 $ GA 2 Points: 3 Feedback Check My Work