The following are the inventories for the years 2016, 2017, Points: 24/24 and 2018 for Parry Company: Cost Market b. Assume Parry uses the direct method and a perpetual inventory system. $50,000 $50,000 January 1, 2016 December 31, 2016 64,000 60,000 70,000 Prepare the necessary journal entries to record: 1. the correct inventory valuation on December 31, 2016 2. the reduction in inventory when the inventory from December 31, 2016 is sold during 2017 Additional Instructions December 31, 2017 71,000 December 31, 2018 75,000 78,000 Required: 1. Assume the inventory that existed at the end of 3. the correct inventory valuation on December 31, 2017 4. the reduction in inventory when the inventory from December 31, 2017 is sold during 2018 Additional Instructions 3. the correct inventory valuation on December 31, 2018 (if necessary) each year was sold in the subsequent year. Prepare journal entries to record the lower of cost or market for each of the following All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. alternatives. PAGE 9 a. allowance method, perpetual inventory GENERAL JOURNAL Score: 16/101 system DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT b. direct method, perpetual inventory system