Instructions The inventories of Berry Company for the years 2019 and 2020 are as follows: Cost NRV $9.000 January 1, 2019 December 31, 2019 $9,000 13,000 11.500 December 31, 2020 15,000 14.500 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 it Berry uses the: a direct method b. allowance method 2. Next Level Explain any differences in inventary valuation and income between the two methods. General Journal 1a. Assume Barry uses the direct method 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 General Journal Instructions How does grading work? PAGE 1 GENERAL JOURNAL Score: 47/51 ACCOUNT TITLE POST. REK DEBIT CREDIT DATE 1 Dec.31.2019 , Cost of Goods Sold 1,500.00 2 Inventory 1,500.00 3 Dec 31, 2020 Cost of Goods Sold 1.150.00 4 Inventory 1.150.00 Points: 9.22 / 10 1b. Assume Barry uses the allowance method. Prepare the necessary journal entries to record 1. the correct inventary 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 General Journal Instructions How does grading work? PAGE 1 GENERAL JOURNAL Score: 74/88 POST. REF. DEBIT CREDIT 1 1,500.00 DATE ACCOUNT TITLE Dec. 31, 2019 Loss on Write-Down of Inventory Allowance to Reduce Inventory to NRV Dec. 31, 2021 Cost of Goods Sold Allowance to Reduce Inventory to NRV 1,500.00 5 1,500.00 5 Inventory 1,500.00 G Dec. 31, 2020 Loss on Write-Down of Inventory 1.000.00 7 Allowance to Reduce Inventory to NRV 1,000.00 Points: 14.3/17