Sarasota Enterprises Ltd.'s records reported an inventory cost of $56,500 and a net realizable value of $52,100 at December 31, 2021. At December 31, 2022, the records indicated a cost of $70,700 and a net realizable value of $60,500. All opening inventory had been sold during the year. (a) Your answer is correct. Assuming that Sarasota Enterprises uses a perpetual inventory system, prepare the December 31, 2022 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. List all debit entries before credit entries.) Date Account Titles and Explanation Direct method Dec. 31, 2022 Cost of Goods Sold Dec. 31, 2022 Inventory Indirect method Loss on Inventory Due to Decline in NRV Allowance to Reduce Inventory to NRV Debit 10200 5800 Credit 10200 5800 Assume that at December 31, 2023, the records show inventory with a cost of $60,900 and a net realizable value of $62,800. Prepare the December 31, 2023 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. List all debit entries before credit entries.) Date Account Titles and Explanation Dec. 31, 2023 Direct method Dec. 31, Indirect method 2023 Debit Credit