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During July, Laesch Company, which uses a perpetual inventory system, sold 1,350 units from its LIFO-based inventory, which had originally cost $18 per unit. The replacement cost is expected to be $29 per unit. Required: Respond to the following two independent scenarios as requested. a. Case 1: In July, the company is planning to reduce its inventory and expects to replace only 1,020 of these units by December 31, the end of its fiscal year. (1) Prepare the entry in July to record the sale of the 1,350 units. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) (3) Prepare the entry for the replacement of the 1,020 units in September at an actual cost of $35 per unit. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Case 2: In July, the company is planning to reduce its inventory and expects to replace only 340 of its units by December 31, the end of its fiscal year. (1) Prepare the entry in July to record the sale of the 1,350 units. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

(2) In December, the company decided not to replace any of the 1,350 units. Prepare the entry required on December 31 to eliminate any valuation accounts related to the inventory that will not be replaced. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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