A8-10 Lower of Cost or NRV-Allowance Method: The records of Loren Movers Ltd. contained the following inventory data: 20X1 20x2 Cost NRV Cost NRY Category 1 Item A $10,000 $ 9,000 $5,000 $3,000 Item B 40,000 35,000 10,000 9,000 Item C 25,000 33,000 45,000 52.000 $75,000 $77,000 $60,000 $64.000 Category 2 Item D $18,000 $16,500 $12,000 $ 10,500 Item E 20,000 4,000 4,000 1.000 Item F 42,000 42,000 56,000 54,000 $80,000 $62,500 $72 000 $65,500 Required: 1. Calculate two different amounts that could justifiably be recorded as the allowance to reduce inventory to lower of cost-or-NRV at the end of 20X1. 2. Record the 20x1 lower of costor-NRV adjustments (if any) for each of the two amounts from requirement I, using the valuation allowance method 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