Help with # 2 would be appreciated.

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 Garcias 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 Net Replacement Realizable Cost Cost Sales Price Valve Normal Prof $36,000 $32,500 $34,000 $24,000 $2,100 87,500 79,400 94,000 83,800 7,400 112,000 124,000 186,400 160,300 18,500 37,000 26,000 54,800 38,000 5,400 $272,500 $261,900 $369,200 $306.100 $33,400 Instructions: (1) Determine the proper balance in the Allowance to Reduce Inventory to NRV at May 31, 2021. Calculations of Proper Balance on the Allowance to Reduce Inventory to NRV At May 31, 2021. Aluminum siding Cedar shake siding Louvered glass doors Thermal windows Totals LCNRV $24,000 83,800 112,000 37,000 $256,800 Inventory cost LCNRV valuation Allowance at May 31, 2021 $272,500 256,800 $15,700 (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