Garcia Home Improvement Company installs replacement siding, windows, and louvered glass doors for single- family homes and condominium complexes in northern New Jersey and southern New York. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2021, and Jim Alcide, controller for Garcia, has gathered the following data concerning inventory. At May 31, 2021, the balance in Garcia's Raw Material Inventory account was $272,500 and the Allowance to Reduce Inventory to NRV had a credit balance of $11,540 Alcide summarized the relevant inventory cost and market data at May 31, 2021, in the schedule below. Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Garcia's May 31, 2021, financial statements for inventory under the lower-of-cost-or-NRV rule as applied to each item in inventory. Devereaux expressed concern over departing from the cost principle. Aluminum siding Cedar shake siding Louvered glass doors Thermal windows Total Replacement Cost Cost $36,000 $32,500 87,500 79,400 112,000 124,000 37,000 26,000 $272,500 $261,900 Sales Price $34,000 94,000 186,400 54,800 $369,200 Realizable Value $24,000 83,800 160,300 38,000 $306,100 Normal Profit $2,100 7,400 18,500 5,400 $33,400 (2) For the fiscal year ended May 31, 2021, determine the amount of the gain or loss that would be recorded due to the change in the Allowance to Reduce Inventory to NRV. Reord the journal entry. journal entry Garcia Home Improvement Company installs replacement siding, windows, and louvered glass doors for single- family homes and condominium complexes in northern New Jersey and southern New York. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2021, and Jim Alcide, controller for Garcia, has gathered the following data concerning inventory. At May 31, 2021, the balance in Garcia's Raw Material Inventory account was $272,500 and the Allowance to Reduce Inventory to NRV had a credit balance of $11,540 Alcide summarized the relevant inventory cost and market data at May 31, 2021, in the schedule below. Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Garcia's May 31, 2021, financial statements for inventory under the lower-of-cost-or-NRV rule as applied to each item in inventory. Devereaux expressed concern over departing from the cost principle. Aluminum siding Cedar shake siding Louvered glass doors Thermal windows Total Replacement Cost Cost $36,000 $32,500 87,500 79,400 112,000 124,000 37,000 26,000 $272,500 $261,900 Sales Price $34,000 94,000 186,400 54,800 $369,200 Realizable Value $24,000 83,800 160,300 38,000 $306,100 Normal Profit $2,100 7,400 18,500 5,400 $33,400 (2) For the fiscal year ended May 31, 2021, determine the amount of the gain or loss that would be recorded due to the change in the Allowance to Reduce Inventory to NRV. Reord the journal entry. journal entry