View Policies Current Attempt in Progress Crane Company began operations in 2017 and determined its ending inventory at cost and at LCNRV at December 31, 2017, and December 31, 2018. This information is presented below. Cost Net Realizable Value 12/31/17 $867,000 $821,900 12/31/18 1.024,000 989,200 (a) Prepare the journal entries required at December 31, 2017, and December 31, 2018, assuming that the inventory is recorded at LCNRV, and that a perpetual inventory system. Use the cost-of-goods-sold method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter Ofor the amounts.) Date Account Titles and Explanation Debit Credit 12/31/17 12/31/18 (b) Prenare journal entries required at December 31 2017 and December 31 2018 assuming that the inventory is recorded at (b) Prepare journal entries required at December 31, 2017, and December 31, 2018, assuming that the inventory is recorded at LCNRV and a perpetual system. Use the loss method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 12/31/17 Allowance to Reduce Inventory to NRV 12/31/18 (c) Which of the two methods above provides the higher net income in each year? Both methods have the same effect