The records of Loren Movers Ltd. contained the following inventory data: 20X1 20X2 Cost NRV Cost NRV Category 1 Item A Item B $ 16,900 $ 14,520 $ 5,400 $ 1,680 50,400 43,200 13,300 12,260 65,200 30,200 39,500 57,200 Item C $ 97,500 $97,220 75,900 $ 79,140 Category 2 Item D Item E Item F $ 23,000 $ 21,100 $ 16,000 $13,240 29,900 13,900 4,700 1,400 49,800 49,800 68,200 64,760 $102,700 $84,800 $88,900 $79,400 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 20X1. 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 20X1. Individual items $ 21,480 18,250 b. Category $ 2. Record the 20x1 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.) View transaction list View journal entry worksheet No Transaction Debit Credit 1 a. General Journal Holding loss on inventory (COS) Allowance to reduce inventory to NRV 2 b. Holding loss on inventory (COS) Allowance to reduce inventory to NRV 3. Record the 20x2 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.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 a. Allowance to reduce inventory to LC/NRV Holding gain on inventory 2 b. Allowance to reduce inventory to LC/NRV Holding gain on inventory