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this is all one question.
The records of Loren Movers Ltd. contained the following Inventory data: 20X1 120X2 Cost NRVCost NRV Category 1 Item A S 13,0
Required: 1. Calculate two different amounts that could justifiably be recorded as the allowance to reduce Inventory to lower
2. Record the 20X1 lower-of-cost-or-NRV adjustments if any) for each of the two amounts from requirement 1, using the valuati
2. Record the 20X1 lower-of-cost-or-NRV adjustments if any) for each of the two amounts from requirement 1, using the valuati
2. Record the 20x1 lower-of-cost-or-NRV adjustments (if any) for each of the two amounts from requirement 1 using the valuati
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 va
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 va
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Answer #1

Part 1

a

Individual items

$30180

b

Category

$22080

Individual items

Allowance

A

2640

(13000-10360)

B

6600

(54200-47600)

C

0

(44200-52300)

D

2840

(18900-16060)

E

18100

(23600-5500)

F

0

(50800-50800)

Total

30180

Category

A-C

1140

(111400-110260)

D-F

20940

(93300-72360)

$22080

Part 2

No.

General journal

Debit

Credit

1

By individual items

Holding loss on inventory

30180

Allowance to reduce inventory to LC/NRV

30180

2

By category

Holding loss on inventory

22080

Allowance to reduce inventory to LC/NRV

22080

Part 3

No.

General journal

Debit

Credit

1

By individual items

Allowance to reduce inventory to LC/NRV

13580

Holding loss on inventory (30180-16600)

13580

2

By category

Allowance to reduce inventory to LC/NRV

10520

Holding loss on inventory (22080-11560)

10520

Individual items

Allowance

A

2560

(5600-3040)

B

2480

(18200-15720)

C

0

(54600-65150)

D

3180

(16100-12920)

E

5700

(5800-100)

F

2680

(61200-58520)

Total

16600

Category

A-C

0

(78400-83910)

D-F

11560

(83100-71540)

11560

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