Your answer is partially correct. Nash Company began operations in 2020 and determined its ending inventory at cost and at LCNRV at December 31, 2020, and December 31, 2021. This information is presented below. Cost Net Realizable Value 12/31/20 $312.590 $289,500 12/31/21 372,520 353,440 (a) Prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual inventory system using 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 O for the amounts.) Date Account Titles and Explanation 12/31/20 Cost of Goods Sold Loss Due to Decline of Inventory to NRV 12/31/21 Loss Due to Decline of Inventory to NRV Cost of Goods Sold Debit 23090 4010 Credit 23090 4010 (b) Prepare journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual system 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.) Date Account Titles and Explanation 12/31/20 Loss Due to Decline of Inventory to NRV Allowance to Reduce Inventory to NRV 12/31/21 Allowance to Reduce Inventory to NRV Recovery of Loss Inventory Debit 23090 4010 Credit 23090 4010