A. Determine the proper balance in allowance to reduce incentory to NRV at May 31, 2020.

B. For the fiscal year ended May 31, 2020, determine tge amount of the gain ot loss that would be recorded due to the chnage in allowance to reduce inventory to NRV

Bridgeport Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2020. Jim Alcide, controller for Bridgeport, has gathered the following data concerning inventory. At May 31, 2020, the balance in Bridgeport's Raw Materials Inventory account was $ 493,680, and Allowance to Reduce Inventory to NRV had a credit balance of $ 27,670. Alcide summarized the relevant inventory cost and market data at May 31, 2020, in the schedule below. Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Bridgeport's May 31, 2020, financial statements for inventory under the LCNRV rule as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Cost Sales Price Net Realizable Value Aluminum siding $ 84,700 $ 77,440 $ 67,760 104,060 113,740 102,608 Cedar shake siding Louvered glass doors Thermal windows 135,520 225,544 203,643 169,400 187,308 169.400 Total $493,680 $ 604,032 $ 543,411