Waterway Company determined its ending inventory at cost and at LCNRV at December 31, 2020, December 31, 2021, and December 31, 2022, as shown below. 12/31/20 12/31/21 12/31/22 Cost $608,100 764,700 850,300 NRV $608,100 696,900 774,900 (a) Prepare the journal entries required at December 31, 2021, and at December 31, 2022, assuming that a perpetual inventory system and the cost-of-goods-sold method of adjusting to LCNRV is used. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit 12/31/21 12/31/22 List of Accounts Assistance Used Accounts Payable Adjustment to Record Inventory at Cost Allowance to Reduce Inventory to Market Allowance to Reduce Inventory to NRV Biological Assets - Shearing Sheep Cash Cost of Goods Sold Estimated Liability on Purchase Commitments Income Summary Inventory Inventory Over and Short Loss Due to Decline of Inventory to NRV Loss Due to Market Decline of Inventory Loss on Fire Notes Payable Purchases Raw Materials Recovery of Loss Due to Market Decline of Inventory Recovery of Loss Due to Impairment Recovery of Loss Inventory Salaries and Wages Expense Sales Revenue Unrealized Holding Gain or Loss - Equity Unrealized Holding Gain or Loss -Income Wool Inventory (b) Prepare the journal entries required at December 31, 2021, and at December 31, 2022, assuming that a perpetual inventory is recorded at cost and reduced to LCNRV using 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.) Account Titles and Explanation Debit Credit Date 12/31/21 12/31/22 List of Accounts Assistance Used Accounts Payable Adjustment to Record Inventory at Cost Allowance to Reduce Inventory to Market Allowance to Reduce Inventory to NRV Biological Assets - Shearing Sheep Cash Cost of Goods Sold Estimated Liability on Purchase Commitments Income Summary Inventory Inventory Over and Short Loss Due to Decline of Inventory to NRV Loss Due to Market Decline of Inventory Loss on Fire Notes Payable Purchases Raw Materials Recovery of Loss Due to Market Decline of Inventory Recovery of Loss Due to Impairment Recovery of Loss Inventory Salaries and Wages Expense Sales Revenue Unrealized Holding Gain or Loss - Equity Unrealized Holding Gain or Loss -Income Wool Inventory