Kieso, Intermediate Accounting, 17e Help System Announcements CALCULATOR PRINTER VERSION BACK Exercise 9-08 Novak 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 $375,880 386,720 Lower-of-Cost-or-Market $357,400 371,940 (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 Account Titles and Explanation 12/31/19 Cost of Goods Sold Allowance to Reduce Inver 12/31/20 Cost of Goods Sold Allowance to Reduce Inver (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 o for the amounts.) Debit Credit Date Account Titles and Explanation 12/31/19 Cost of Goods Sold Allowance to Reduce Inver 12/31/20 Cost of Goods Sold Allowance to Reduce Inver (c) Which of the two methods above provides the higher net income in each year