Riverbed Enterprises Ltd.s records reported an inventory cost of $55,900 and a net realizable value of $52,200 at December 31, 2018. At December 31, 2019, the records indicated a cost of $69,300 and a net realizable value of $60,800. All opening inventory had been sold during the year.

Assuming that Riverbed Enterprises uses a perpetual inventory system, prepare the December 31, 2019 entry that is needed under the direct method and the indirect method.

Date Account Title and Description Debit Credit

Direct Method:

Dec. 31, 2019

Indirect Method:

Dec. 31, 2019