Testbank Exercise 143 At 12/31/20, the end of Carla Vista Company's first year of business, inventory was $6,100 and $4,750 at cost and at market, respectively. Following is data relative to the 12/31/21 inventory of Jenner: Original Cost Replacement Item Per Unit Cost A $0.70 $0.30 B 0.55 0.50 c 0.75 0.80 D 0.60 E 0.70 0.50 0.65 Selling price is $1.00/unit for all items. Disposal costs amount to 10% of seting price and a "normal" profit is 30% of selling price. There are 1,300 units of each item in the 12/31/21 inventory. Prepare the entry at 12/31/20 necessary to implement the lower-of-cost-or-market procedure assuming Carla Vista uses a contra account for its balance sheet. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date 12/31/20 Account Titles and Explanation Debit Credit Complete the last three columns in the 12/31/21 schedule below based upon the lower-of-cost-or-market rules CALCURATOR Complete the last three columns in the 12/31/21 schedule below based upon the lower-of-cost-or-market rules. Item Original Cost Per Unit Replacement Cost A $0.70 $0.30 B 0.55 0.50 mon C 0.75 0.80 D 0.60 0.50 E 0.70 0.65 Net Realizable Value: BILL SCREEN PRINTER VERSION BACK Net Realizable Value Less Normal Profit Appropriate Inventory Value Prepare the entries necessary at 12/31/21 based on the data above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 12/31/21 (To record cost of goods sold) 12/31/21 Prepare the entries necessary at 12/31/21 based on the data above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 12/31/21 12/31/21 [To record cost of goods sold) (To record profit/ loss) How are inventory losses disclosed on the income statement? Inventory losses can be disclosed separably below Click if you would like to Show Work for this question: Open Show Work or they can be shown as part of