Lower of Cost or Market Chart of Accounts s General Journal Next Level Instructions The following are the inventories for the years 2016, 2017, and 2018 for Parry Company: Cost Market $50,000 $50,000 December 31, 201664,00060,000 December 31, 2017 71,000 70,000 December 31, 2018 75,00078,000 January 1, 2016 Required: 1. Assume the inve ntory that existed at the end of each year was sold in the subsequent year. Prepare journal entries to record the lower of cost or market for each of the following alternatives. a. allowance 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