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

		20X1								20X2
		Cost			NRV				Cost			NRV
Category 1
	Item A		$	16,900		$	14,520			$	5,400		$	1,680
	Item B			50,400			43,200				13,300			12,260
	Item C			30,200			39,500				57,200			65,200
			$	97,500		$	97,220				75,900		$	79,140
Category 2
	Item D		$	23,000		$	21,100			$	16,000		$	13,240
	Item E			29,900			13,900				4,700			1,400
	Item F			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.

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.)

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.)