Kumar Inc. uses a perpetual inventory system. At January 1, 2014, inventory was $214,000 at both cost and market value. At December 31, 2014, the inventory was $286,000 at cost and $265,000 at market value.

Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method

(b) Loss method. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No. Account Titles and Explanation Debit Credit

(a)___________________ _______________ __________________

_____________________ ______________ __________________

(b) _________________ _______________ __________________

____________________ ________________ __________________