In 2021, Adonis Industries changed its method of valuing inventory from the average cost method to the FIFO method. At December 31, 2020, Adonis’s inventories were $47.6 million (average cost). Adonis’s records indicated that the inventories would have totaled $64 million at December 31, 2020, if determined on a FIFO basis. Ignoring income taxes, what journal entry will Adonis use to record the adjustment in 2021?

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A:

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A:

Q: In 2021, the Barton and Barton Company changed its method of valuing inventory from the FIFO method…

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A:

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A:

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A: Given Data:

Q: net income of

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A:

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A: Solution:- The following will Rios, Inc. record in 2019 as follows under:- Introduction:- Findings:-…

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Q: During 2021, WMC Corporation discovered that its ending inventories reported on its financial…

A: The answer is stated below:

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A: Cost index in the layer year = CPI on December 31, 2021 / CPI on  January 1, 2021 = 264/240 = 1.10

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A: Solution Introduction When there is change in the accounting method the effect of the change shall…

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A:

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A: Prepare journal entry

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