QUESTION $3$

Tambah Cantik Bhd installs replacement siding, windows and louvered glass doors for condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended $31$ March $2023.$ On that date, the balance in Tambah Cantik Bhd Inventory account was RM$408,000$ and Allowance to Reduce Inventory to Net Realisable Value $($NRV$)$ had a credit balance of RM$32,000.$ The relevant inventory costs and market data on $31$ March $2023$ is summarised in the schedule below.

Inventory Cost $($RM$)$ Sales Price $($RM$)$ Net Realisable Value $($RM$)$

Aluminium siding $70,00064,00056,000$

Cedar siding $86,00094,00084,800$

Louvered glass doors $112,000186,400168,300$

Thermal windows $140,000154,800140,000$

Total $408,000499,200449,100$

Tambah Cantik Bhd applies the Loss Method and use an Allowance Account to record for the write down of the inventory to net realisable value.

REQUIRED:

$($a$)$ Assuming that Tambah Cantik Bhd applies the LCNRV rule to item by item. Determine the proper balance in Allowance to Reduce of Inventory to Net Realisable Value Account on $31$ March $2023.$

$($b$)$ For the financial year end $31$ March $2023,$ determine the amount of the gain or loss that would be recorded due to the change in Allowance to Reduce Inventory at Net Realisable Value. Prepare the related journal entry