The records of Loren Movers Ltd. contained the following inventory data: 20X1 20X2 Cost NRV Cost NRV Category 1 Item A $ 12,900 $ 10,080 $ 7,600 $ 4,220 Item B 44,400 36,900 13,600 11,180 Item C 35,800 46,600 51,000 61,800 $ 93,100 $ 93,580 72,200 $ 77,200 Category 2 Item D $ 19,700 $ 18,080 $ 12,800 $ 11,200 Item E 24,000 4,800 8,700 5,100 Item F 46,000 46,000 56,000 53,160 $ 89,700 $ 68,880 $ 77,500 $ 69,460 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.