Prepare the journal entries required at December $31,2022$ and $2023,$ assuming that a periodic inventory system is used, with

inventory recorded at cost and reduced to NRV through the use of an allowance account. $($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. List all debit entries before credit entries.$)$

$($To close beginning inventory$)$

$($To record ending inventory$)$

Loss on Inventory Due to Decline in NRV

Allowance to Reduce Inventory to NRV

$($To write down inventory to net realizable value$)$

$($To close beginning inventory$)$

$($To record ending inventory$)$

Loss on Inventory Due to Decline in NRVAyayai Company determined its ending inventory at cost and at lower of cost and net realizable value at December $31,2021,2022,$

and $2023,$ as follows: