Martinez Home Improvement Company installs replacement siding, windows, and louvered glass doors for single family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2020. Jim Alcide, controller for Martinez, has gathered the following data concerning inventory. At May 31, 2020, the balance in Martinez's Raw Materials Inventory account was $424,320, and Allowance to Reduce Inventory to NRV had a credit balance of $27,440. Alcide summarized the relevant inventory cost and market data at May 31, 2020, in the schedule below. Alcide assigned Patricia Devereaux an intern from a local college, the task of calculating the amount that should appear on Martinez's May 31, 2020, financial statements for inventory under the LCNRV rule as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Cost Sales Price Net Realizable Value Aluminum siding $72,800 $66,560 $58,240 Cedar shake siding 89.440 97.760 88,192 Louvered glass doors 116,480 193,856 175,032 Thermal windows 145,600 160,992 145,600 Total $424,320 $519,168 $467.064 X Your answer is incorrect Determine the proper balance in Allowance to Reduce Inventory to NRV at May 31, 2020. Balance in the Allowance to Reduce Inventory to NRV 35984