e 1: Question 1 (9 points) The controller of Houbolt Corp has the following information relating to its inventory 2 Total cost Total NRV Inventory classification Snowskis Item A Item B 630 580 650 500 Water skis Item C Item D 500 680 530 650 The balance in the valuation allowance is $25 Required Prepare the journal entry to record the write down If any, to reduce ending inventory to the lower of cost and NRV using the valuation method assuming the following A Houbolt applies the lower of cost or NRV valuation by individual items (5 Marks) B Houbolt applies the lower of cost or NRV valuation by cassification (4 Marks)