Novak Enterprises Ltd.s records reported an inventory cost of $56,600 and a net realizable value of $53,200 at December 31, 2018. At December 31, 2019, the records indicated a cost of $69,900 and a net realizable value of $60,500. All opening inventory had been sold during the year. Your answer is correct. Assuming that Novak Enterprises uses a perpetual inventory system, prepare the December 31, 2019 entry that is needed under the direct method and the indirect method. (Credit account titles are automatically indented when the 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 Debit Credit Account Titles and Explanation Direct method December 31, 2019 Cost of Goods Sold 9400 Inventory 9400 Indirect method December 31, 2019 Loss on Inventory Due to Decline in NRV 6000 Allowance to Reduce Inventory to NRV 6000 e Textbook and Media List of Accounts - Your answer is partially correct. Assume that at December 31, 2020, the records indicate inventory with a cost of $60,400 and a net realizable value of $62,900. Prepare the December 31, 2020 entry that is needed under the direct method and the indirect method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Debit Credit Account Titles and Explanation Direct method December 31, 2020 No Entry No Entry Indirect method December Loss on Inventory Due to Decline in NRV 31, 203 No Entry Allowance to Reduce Inventory to NRV 2500 2500