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Blossom Wig Shoppe carries a number of wigs that are made specifically for people who require them while undergoing medical treatment. They use a perpetual

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Blossom Wig Shoppe carries a number of wigs that are made specifically for people who require them while undergoing medical treatment. They use a perpetual inventory system and the FIFO cost formula for valuing inventory. The following information is available regarding the inventory on hand at year end, December 31 Units 12 Unit Net Realizable Value $137 Types: Marilyn Farrah Jane J-Lo Cpt. Kirk Unit Cost $139 218 65 185 154 232 70 200 12 124 Assuming Blossom values each type of wig separately, determine the lower of cost and net realizable value of the ending inventory. Lower of cost and net realizable value 003453464020c085d27082c5d36280108682d30dcfe Prepare the journal entry required, if any, to record the adjustment at year end. (Credit account titles are automatically indented when the amount manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Dec-31 Debit Credit (To record the decline in inventory value.) Now assume Blossom combines all wigs together for the purposes of determining LCNRV. What amount should be reported on Blossom's balance sheet at year end? Value of inventory $ Assume Blossom made the required journal entry at year end based on the LCNRV as determined in part (a). Shortly after year end, as the economy recovered, it was determined that the NRV of this inventory had increased by $563. 01:51:46 HO Prepare the journal entry required, if any, to record this recovery. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Date Account Titles and Explanation Jan-31 Debit Credit (To record the recovery in inventory value.)

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