Ef 392. Concord Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes andcondominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31,2025. Jim Alcide, controller for Concord, has gathered the following data concerning inventory.At May 31, 2025, the balance in Concord's Raw Materials Inventory account was $501,840. Alcide summarized the relevant inventorycost and market data at May 31, 2025, in the schedule below.Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Concord'sMay 31, 2025, financial statements for inventory under the lower-of-cost-or- market rule as applied to each item in inventory.Devereaux expressed concern over departing from the historical cost principle. Consider the following expanded data at May 31,2025. Assume Concord uses LIFO inventory costing.Aluminum sidingCedar shake sidingLouvered glass doorsThermal windowsTotalInventory loss $Cost$86,100105,780May 31137,760172,200$501,840ReplacementCost$76,87597,662152,520154,980$482,037Sales PriceDate Account Titles and Explanation$78,720115,620229,272190,404$614,016Net RealizableValue$68,880104,304207,009(a1) Determine the write-down, if any, to reduce inventory to market at May 31, 2025.172,200$552,393Normal ProfitDebit$6,2739,10222,755(a2) For the fiscal year ended May 31, 2025, prepare the entry to record the decline in inventory to market, if any, using the lossmethod. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indentmanually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.)18,942$57,072Credit

Inventory write-down - It is one of the processes of accounting that accounts for the decrease in an…

(a1) Determine the write-down, if any, to reduce inventory to market at May 31, 2025. Inventory loss $ (a2) For the fiscal year ended May 31, 2025, prepare the entry to record the decline in inventory to market, if any, using the loss method. (List all debit entries before credit entries. Credit account titles are automatically indented when 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.)