The following information is for Martinez Enterprises Ltd.:

		Jan 31		Feb. 28		Mar. 31		Apr. 30
Inventory at cost		$25,900		$26,100		$29,000		$23,600
Inventory at the lower of cost and net realizable value		24,900		18,000		22,200		17,400
Purchases for the month				20,200		24,900		27,600
Sales for the month				30,100		37,200		41,000

1.Using the above information, prepare monthly income statements (as far as the data permit) in columnar form for February, March, and April. Show the inventory in the statement at cost; show the gain or loss due to fluctuations in NRV separately. Martinez uses the indirect or allowance method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2.Prepare the journal entry that is needed to establish the valuation account at January 31 and the entries to adjust it at the end of each month after that. (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 0 for the amounts.)