Display JSON Object in Drop Down List

Display JSON Object in Drop Down List

Suppose my AJAX call brings back the following json objects from the backend:
  [{"FName":"Jane","LName":"Doe", "ID":"ABC123"},  {"FName":"Joe","LName":"Bloe", "ID":"XYZ456"} ]

Below is my AJAX call but I have not been able to display the JSON contents in a drop down list.  
  1. var custNames= $("#Customers"); //Drop Down List ID
  2.     $.ajax({
  3.     url: 'http://localhost:32388/api/service',
  4.     type: 'GET',
  5.     dataType: 'json',
  6.     contentType: 'application/json; charset=utf-8',                    
  7.     success: function (data) {                                              
  8.        custNames.append($('</option>', { value: -1, text: 'Select a customer' }));        
  9.        $(data).each(function (index, item) {
  10.              custNames.append($('</option>', { value:item.FName + ' ' + item.LName, text:item.FName + ' ' + LName}));
  11.              custNames.append($('</option>', { value:item.ID, text:item.ID}));
  12.        });
  13.     }                
  14. });
Please point out where I went wrong in my code, thanks.