The following are the inventories for the years 2007, 2008, and 2009 for the Parry Company:

Required
Prepare journal entries to record the lower of cost or market for each of the following alternatives:
1. Allowance method, periodic inventory system
2. Allowance method, perpetual inventory system
3. Direct method, periodic inventory system
4. Direct method, perpetual inventorysystem

Transcribed Image Text:

Market $50,000 60,000 70,000 78,000 Cost anuary 1, 2007 December 31, 2007 December 31, 2008 December 31, 2009 $50,000 64,000 71,000 75,000