P8-9 Milford Company determined its ending inventory at cost and
at lower of cost and net realizable value at December 31, 2015,
2016, and 2017, as follows:
Cost Lower of Cost and Net Realizable Value
Dec. 31, 2015 $60,000 $60,000
Dec. 31, 2016 79,000 74,500
Dec. 31, 2017 78,800 69,000
Instructions (a) Prepare the journal entries that are required
at December 31, 2016 and 2017, assuming that a periodic inventory
system and the direct method of adjusting to NRV are...