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Check my work The records of Loren Movers Ltd. contained the following inventory data: 20X1 20x2 Cost NRV Cost NRV Category 1 Item A $ 13,000 $10,360 $ 5,600 $ 3,040 Item B 54,200 47,600 18.200 15.720 44,200 52,300 54,600 65150 $ 111,400 $110,260 78.400 $83,910 Item C Category 2 Item D Item E Item F $ 18,900 23,600 50,800 $ 16,060 S 16,100 $ 12,920 5,500 5,800 100 50,800 61200 58,520 $93,300 $ 72,360 $ 83,100 $71540 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. a. Individual items b. Category View transaction list Journal entry worksheet Record the allowance to reduce Inventory to LC/NRV by Individual items. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal 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 transaction event select "No lournal antru roman in the first a t fald View transaction list Journal entry worksheet Record the allowance to reduce Inventory to LC/NRV by Category. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal Check my we 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 Journal entry worksheet Record the allowance to reduce inventory to LC/NRV by Individual items. Note: Enter debits before credits. Transaction General Journal Debit Credit View general Journal Record entry Clear entry 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 fleld.) View transaction list Journal entry worksheet Record the allowance to reduce inventory to LC/NRV by Category. Note: Enter debits before credits General Journal Debit Credit Transaction View general journal Clear entry Record entry

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