Question 1 The controller of Bailey Corp. has provided you with the following information relating to its inventory: (Amounts are low for quiz purposes only.) FIFO is used. Year end is Dec. 31. Activity in year, 2020: Beginning inventory: 10 units @ $40 Purchases in year: 220 units @ $40 Purchase returns: 20 units @ $40 Sales in year: 195 units @ $50 selling price Ending inventory: Date Cost NRV Dec 31/19 $ 400 $ 380 Dec 31/20 $ 600 $ 612 Bailey uses the periodic inventory system, and records its inventory at cost. An allowance account is used to account for the lower of cost and NRV, and it is adjusted at the end of each year to adjust the value of the inventory to the lower of cost and NRV. Required: 1. Prepare the journal entries that Bailey would have prepared for its 2019 year end to account for the difference between NRV and Cost, assuming that 2019 was its first year of operations. 2. Prepare all the entries for 2020, including a similar entry as per requirement (1), related to the inventory. As well, record any regular year end adjusting entry required. 3. Discuss one other possible method of calculating market which was previously considered in Canadian accounting standards