Instructions The inventories of Berry Company for the years 2019 and 2020 are as follows: Cost NRV January 1, 2019 $10,000 $10,000 December 31, 2019 13,000 11,500 December 31, 2020 15,000 14,000 Berry uses a perpetual inventory system and the FIFO inventory cost flow assumption. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the: a. direct method b. allowance method 2. Next Level Explain any differences in inventory valuation and income between the two methods Next Level 2. Complete the statements below that explain any differences in inventory valuation and income between the two methods. The two methods produce $ net inventory valuations and have under the direct method and $ entry to reduce inventory to market under the direct method and S effects on net income. At the end of 2020, inventory would be valued at under the allowance method. Income would be reduced by $ alter the after the entry to reduce inventory to market under the allowance method.