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Question 7 0/10 View Policies Show Attempt History Current Attempt in Progress Pearl Home Improvement Company installs replacement siding, windows, and louvered glass doors for

Question 7

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Pearl 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 Pearl, has gathered the following data concerning inventory. At May 31, 2020, the balance in Pearls Raw Materials Inventory account was $444,720, and Allowance to Reduce Inventory to NRV had a credit balance of $27,340. 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 Pearls 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 $76,300 $69,760 $61,040
Cedar shake siding 93,740 102,460 92,432
Louvered glass doors 122,080 203,176 183,447
Thermal windows 152,600 168,732 152,600
Total $444,720 $544,128 $489,519

New attempt is in progress. Some of the new entries may impact the last attempt grading.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

$

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New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

For the fiscal year ended May 31, 2020, determine the amount of the gain or loss that would be recorded (using the loss method) due to the change in Allowance to Reduce Inventory to NRV. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

The amount of the gain (loss)

$

Please HELP, the last person that helped got it incorrect and I have a test tomorrow.

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