Alignment Numb Clipboard Font - X fx C D E F G 1 Garcia Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-fam 2 homes and condominium complexes in northern New Jersey and southern New York. The company is in the proce of preparing its annual financial statements for the fiscal year ended May 31, 2019, and Jim Alcide, controller for Garcia, has gathered the following data concerning inventory. 3 6 At May 31, 2019, the balance in Garcia's Raw Material Inventory account was $268,000 7 and the Allowance to Reduce Inventory to NRV had a credit balance of $11,700 8 Alcide summarized the relevant inventory cost and market data at May 31, 2019, in the schedule below. 9 Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Garcia's May 31, 2019, financial statements for inventory under the lower-of-cost-or-NRV rule as applied to w each item in inventory. Devereaux expressed concern over departing from the cost principle. 12 12 Replacement Net Realizable 13 Cost Cost Sales Price Value Normal Profit 14 Aluminum siding $34.000 $32,500 $34.000 $24,000 $2,100 15 Cedar shake siding 89,000 79,400 9 4,000 83,800 7.400 16 Louvered glass doors 105,000 124,000 186,400 1 60,300 18,500 17 Thermal windows 40,000 26.000 54,800 38,000 5,400 18 Total $268.000 $261,900 $369.200 $308.100 $33.400 19 20 Instructions: 21 (1) Determine the proper balance in the Allowance to Reduce Inventory to NRV at May 31, 2019. LCNRV_Gross Profit Retail Inventory 7 Thermal windows 8 Total 40,000 $268,000 26,000 $261,900 54,800 $369,200 38,000 $308,100 9 20 Instructions: 21 (1) Determine the proper balance in the Allowance to Reduce Inventory to NRV at May 31, 2019. 22 23 Calculations of Proper Balance on the Allowance to Reduce Inventory to NRV At May 31, 2019. 24 LCNRV Aluminum siding Cedar shake siding Louvered glass doors Thermal windows Totals 25 Inventory cost LCNRV valuation Allowance at May 31, 2019 36 (2) For the fiscal year ended May 31, 2019. determine the amount of the gain or loss that would be recorde 37 due to the change in the Allowance to Reduce Inventory to NRV. Reord the journal entry. LCNRV Grossrofit Retail invention D C Allowance at May 31, 2019 5 (2) For the fiscal year ended May 31, 2019, determine the amount of the gain or loss that would be recorded 7 due to the change in the Allowance to Reduce Inventory to NRV. Reord the journal entry. 39 Balance prior to adjustment Less: Required balance Loss to be recorded journal entry LCNRV_Gross Crofit Retail inventory O Type here to search