The controller of Company YYZ has provided you with the following information relating to its inventory:

Company YYZ uses the periodic inventory system, and records its inventory at cost. An allowance account is adjusted at the end of each year to adjust the value of the inventory to the lower of cost and NRV.

Required: Prepare the journal entries that Utah would have prepared for its 2022 and 2023 year ends, assuming that 2022 was its first year of operations.

\begin{tabular}{ccc} Date & Cost & Lower of cost and NRV \\ Dec 31/22 & $457,000 & $410,000 \\ Dec 31/23 & $615,000 & $555,000 \end{tabular}