In 2020, Gill's Company changed its inventory cost system from LIFO to FIFO. 1. This accounting change will be reported using the retrospective or modified retrospective method? 2. Gill's Company determines that if they had always been using FIFO, then the 2020 beginning balance of inventory would be $20,000 higher. Please record the journal entry Gill's Company needs to make to adjust for this change. (Ignore tax effects).
In 2020, Gill's Company changed its inventory cost system from LIFO to FIFO. 1. This accounting change will be reported using the retrospective or modified retrospective method? 2. Gill's Company determines that if they had always been using FIFO, then the 2020 beginning balance of inventory would be $20,000 higher. Please record the journal entry Gill's Company needs to make to adjust for this change. (Ignore tax effects).
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11RE: At the end of 2019, Manny Company recorded its ending inventory at 350,000 based on a physical...
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In 2020, Gill's Company changed its inventory cost system from LIFO to FIFO.
1. This accounting change will be reported using the retrospective or modified retrospective method?
2. Gill's Company determines that if they had always been using FIFO, then the 2020 beginning balance of inventory would be $20,000 higher. Please record the journal entry Gill's Company needs to make to adjust for this change. (Ignore tax effects).
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