Question: Kumar Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $214,000,000 at both cost and net realizable value. At December 31, 2020,

Kumar Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $214,000,000 at both cost and net realizable value. At December 31, 2020, the inventory was $286,000,000 at cost and $265,000,000 at net realizable value. Prepare the entry under

(a) The cost-of-goods-sold method

(b) The loss method.

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