Novak Company began operations in 2020 and determined its ending inventory at cost and at LCNRV at December 31, 2020, and December 31, 2021. This information is presented below. Net Realizable Value $333,610 426,790 Cost $356,910 446,240 12/31/20 12/31/21 (a) Prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method. (Credit account titles are automatically indented when amount Is entered. Do not Indent manually. If no entry is required, select "No entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit 12/31/20 Cost of Goods Sold 23300 Allowance to Reduce Inventory to NRV 23300 12/31/21 Allowance to Reduce Inventory to Market 3850 Cost of Goods Sold 3850 (b) Prepare journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual system using the loss method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit 12/31/20 Credit 12/31/21 (c) Which of the two methods above provides the higher net income in each year