Sokos Corporation sells item A as part of its product line. Transactions related to this product during December 2017 are summarized below. Units 50 40 Date Dec. 1 Dec. 4 Dec. 11 Dec. 13 Dec. 20 Dec. 27 Transaction Inventory Sale Purchase Sale Purchase Sale 75 Amount per Unit $30.00 36.00 33.00 37.50 34.00 40.00 Sokos uses a perpetual inventory system and makes its inventory purchases on account. It uses the FIFO inventory costing method and the lower of cost and net realizable value rule on an individual item basis. Its fiscal year ends on December 31 each year. All sales are on account Required: 1. Prepare journal entries to record the transactions on December 4 and December 11. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 3. Would the cost of ending inventory increase or decrease if Sokos used the weighted-average cost method instead of FIFO. O Increase O Decrease 4. The net realizable value of Item A is $30 per unit at December 31, 2017. Prepare the adjusting entry to reflect the application of the LC&NRV rule. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record cost of sales on goods sold on account. Note: Enter debits before credits. General Journal Debit Credit Date Dec. 31 Record entry Clear entry View general journal