Problem 9-4 Your answer is incorrect. Try again. Sheridan 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, 2017. Jim Alcide, controller for Sheridan, has gathered the following data concening inventory. At M?y 31, 2017 the balance in Sheridan's Raw Materials Inventory account was $452,880, and Allowance to Reduce Inventory to Market had a credit balance of $28,520. Alcide summarized the relevant inventory cost and market data at May 31, 2017, in the schedule below Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Sheridan's May 31, 2017, financial statements for inventory at lower-of-cost-or-market as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Assume Garcla uses LIFO inventory costing Sales Price $71,040 104,340 206,904 171,828 554,112 Net Realizable Value $62,160 94,128 186,813 155,400 Normal Profit $5,661 8,214 20,535 17,094 $51,504 Cost $77,700 95,460 Aluminum siding Cedar shake siding Louvered glass doors Thermal windows $69,375 88,134 124,320 137,640 139,860 $452,880 $435,009 $498,501 (a1) Determine the proper balance in Allowance to Reduce Inventory to Market at May 31, 2017 Balance in the Allowance to Reduce Inventory to Market 3,552 (a2) For the fiscal year ended May 31, 2017, determine the amount of the gain or loss that would be recorded due to the change in Allowance to Reduce Inventory to Market The amount of the gain (loss) 32,072