The following are the inventories for the years 2010, 2011, and 2012 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:

anuary 1, 2010 December 31, 2010 December 31, 2011 December 31, 2012 Cost $50,000 64,000 71,000 75,000 Market $50,000 60,000 70,000 78,000