Question $\backslash$#$2(16$ Marks, $16$ Minutes$)$ of cost or market Company Limited determined its ending inventory at cost and lower information tiket as at December $31,20$X$1$ and December $31,20$X$2.$ This Required: $1.$ Prepare the adjusting entries$/$closing entries at December $\backslash (31^\{\backslash$text $\{$st $\}\},20\backslash$times $2\backslash ),$ assuming that the inventory is recorded directly at NRV$/$market and a periodic inventory system is used. $2.$ Prepare the adjusting entries$/$closing entries at December $\backslash (31^\{\backslash$text $\{$st $\}\},20\backslash$times $2\backslash ),$ assuming that the inventory is recorded at cost and an allowance account is adjusted at each year end under a periodic inventory system. $3.$ Which of the two methods provides the highest net income in each year?