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Example (8): In 2020, LED, Inc. experienced a decline in the value of its inventory resulting in a write-down of its inventory from $248,000 to $200,000. The company used the loss method in 2020 to record the necessary adjustment and uses an allowance account to reduce inventory to NRV. In 2021, market conditions have improved dramatically and LED, Inc.'s inventory increases to an NRV of $225,000. prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming that the inventory is recorded at cost, using a perpetual system and the loss method