Wildhorse 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. Unit Net Types: Units Unit Cost Realizable Value Marilyn 15 $141 $137 Farrah 10 200 225 Jane 6. 69 72 J-Lo 6. 184 206 Cpt. Kirk 9 147 107 Assuming Wildhorse values each type of wig separately, determine the lower of cost and net realizable value of the ending inventory. Lower of cost and net realizable value Debit Credit Date Account Titles and Explanation Dec-31 (To record the decline in inventory value.) Now assume Wildhorse combines all wigs together for the purposes of determining LCNRV. What amount should be reported on Wildhorse's balance sheet at year end? Value of inventory Assume Wildhorse 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 $589. 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 O for the amounts.) Debit Credit Date Account Titles and Explanation Jan-31 (To record the recovery in inventory value.)