3. Record the 20x2 lower-of-cost-or-NRV adjustments (if any) under each of the two lower of cost or NRV methods, using the valuation allowance method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is complete but not entirely correct. No Transaction General Journal Debit Credit 1 a. 12,900 X Allowance to reduce inventory to LC/NRV Holding loss on inventory X 12,900 X 2 b. 9,180 X Allowance to reduce inventory to LC/NRV Holding loss on inventory x 9,180 X The records of Loren Movers Ltd. contained the following inventory data: 20X1 20X2 Cost NRV Cost NRV Category 1 Item A Item B Item C $ 15,400 $ 13,160 $ 5,600 $ 2,920 44,200 37,000 10,900 9,860 65,450 38,600 46,700 58,200 $98,200 $96,860 74,700 $78,230 Category 2 Item D Item E Item F $ 24,100 $22,000 $ 15,900 $ 14,080 24,500 900 9,500 5,600 45,600 45,600 71,000 67,540 $94,200 $68,500 $96,400 $87,220