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Illustration of LCM: A. ABC Inc. had the following inventory records at Dec. 31. Complete...

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Illustration of LCM: A. ABC Inc. had the following inventory records at Dec. 31. Complete the table and indicate the inventory valuation using the LCM rule at Dec. 31 assuming that ABC wants to be as conservative as possible and be consistent with IRS rules Product CostReplacementNRV LIFO NRV ventory Norma Market ValueValuation at 12/31 Designated In Cost Profit $90,000 110,000 60,000 100,000 105,000 $98,000 130,000 $114,000 80,000 37,500 58,000 90,000 100,000 110.000 50,000 82,000 115.000 102.000 55,000 46,000 Total B. Assume that ABC uses a perpetual inventory system. Prepare the adjusting journal entry to record inventory at the LCM under two assumptions 1) ABC uses the Direct Method for recording inventorv at the LCM Date Account Description Debit Credit 2) ABC uses the Indirect/Allowance Method for recording inventory at the LCM. Date Account Description Debit Credit

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