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Sheridan Wig Shoppe carries a number of wigs that are made specifically for people who require them while undergoing medical treatment. They use a perpetual

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Sheridan Wig Shoppe carries a number of wigs that are made specifically for people who require them while undergoing medical treatment. They use a perpetual inventory system and the FIFO cost formula for valuing inventory. The following information is available regarding the inventory on hand at year end, December 31. Types: Units Unit Cost Unit Net Realizable Value Marilyn 13 $146 $141 Farrah 11 217 222 Jane 9 55 89 J-LO 6 198 207 Cpt. Kirk 9 153 111 Assuming Sheridan values each type of wig separately, determine the lower of cost and net realizable value of the ending 11:56 AM VULVIU Assuming Sheridan values each type of wig separately, determine the lower of cost and net realizable value of the ending inventory Lower of cost and not realizable value $ List of Accounts Prepare the journal entry required, if any, to record the adjustment at year end. (Credit account titles are automatically indented when the amount is entered Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Debit Credit Date Account Titles and Explanation Date Account Titles and Explanation Debit Credit Dec-31 (To record the decline in inventory value) List of Accounts Now assume Sheridan combines all wigs together for the purposes of determining LCNRV What amount should be reported on Sheridan's balance sheet tyear end! Value of inventory Assume Sheridan made the required journal entry at year end based on the LCNRV as determined in part (a). Shortly after year end, as the economy recovered, it was determined that the NRV of this inventory had increased by $623. Prepare the journal entry required, if any, to record this recovery. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Jan-31 To record the recovery in inventory value

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