You assemble the following information for Pharoah Department Store, which computes its inventory under the dollar-value LIFO method. Inventory on January 1, 2020 Purchases Increase in price level for year Cost $678,600 1,113.600 Retail $870,000 1,392,000 9% Compute the cost of the inventory on December 31, 2020, assuming that the inventory at retail is (a) $853,470 and (b) $1,058,935. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answers to 0 decimal places, e.g. 28,987.) (a) Cost of the inventory on December 31, 2020 $ (b) Cost of the inventory on December 31, 2020 $ Wildhorse Company began operations in 2019 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2019, and December 31, 2020. This information is presented below: 12/31/19 12/31/20 Cost $380,130 375,650 Lower-of-Cost-or- Market $359,390 358,630 (a) Prepare the journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) 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 for the amounts.) Debit Credit Date 12/31/19 Account Titles and Explanation Cost of Goods Sold Allowance to Reduce Inventory to Market 20740 20740 12/31/20 Allowance to Reduce Inventory to Market 3720 Cost of Goods Sold 3720 (b) Prepare journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market under a perpetual system (loss method 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 Ofor the amounts.) Debit Credit Date 12/31/19 Account Titles and Explanation Loss Due to Market Decline of Inventory 20740 Allowance to Reduce Inventory to Market 20740 12/31/20 Allowance to Reduce Inventory to Market 3720 1 3720