The records of Loren Movers Ltd$.$ contained the following inventory data:

$20$X$120$X$2$

Cost NRV Cost NRV

Category $1$

Item A $ $11,200$ $ $8,440$ $ $7,800$ $ $4,480$

Item B $44,00037,10017,20016,020$

Item C $34,00044,20046,80057,050$

$ $89,200$ $ $89,74071,800$ $ $77,550$

Category $2$

Item D $ $22,900$ $ $19,820$ $ $14,300$ $ $12,640$

Item E $27,8006,70013,4008,300$

Item F $54,80054,80064,40062,360$

$ $105,500$ $ $81,320$ $ $92,100$ $ $83,300$

Required:

$1.$ Calculate two different amounts that could justifiably be recorded as the allowance to reduce inventory to lower$-$of$-$cost$-$or$-$NRV at the end of $20$X$1.$

$2.$ Record the $20$X$1$ lower$-$of$-$cost$-$or$-$NRV adjustments $($if any$)$ for each of the two amounts from requirement $1,$ using the valuation allowance method. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

$3.$ Record the $20$X$2$ lower$-$of$-$cost$-$or$-$NRV adjustments $($if any$)$ under each of the two lower of cost or NRV methods, using the valuation allowance method. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$