8Goldmeyer Company has used the FIFO method of inventory valuation since it began operations in 2021. Goldmeyer decided tochange to the average cost method for determining inventory costs at the beginning of 2024. The following schedule shows year-endinventory balances under the FIFO and average cost methods:eBook101HintDPrintReferencesYear202120222023FIFO$46,20081,60087,800Required:1. Ignoring income taxes, prepare the 2024 journal entry to adjust the accounts to reflect the average cost method.2. How much higher or lower would cost of goods sold be in the 2023 revised income statement?Complete this question by entering your answers in the tabs below.Required 1 Required 2Ignoring income taxes, prepare the 2024 journal entry to adjust the accounts to reflect the average cost method.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.View transaction listAverage Cost$ 56,40072,20081,600<Journal entry worksheet1Record the adjustment necessary to reflect the average cost method.Note: Enter debits before credits.Event1Record entryGeneral JournalClear entryDebitCreditView general journal> 8Goldmeyer Company has used the FIFO method of inventory valuation since it began operations in 2021. Goldmeyer decided tochange to the average cost method for determining inventory costs at the beginning of 2024. The following schedule shows year-endinventory balances under the FIFO and average cost methods:eBookHintPrintReferencesYear202120222023FIFO$ 46,20081,60087,800Average Cost$ 56,40072,20081,600Required:1. Ignoring income taxes, prepare the 2024 journal entry to adjust the accounts to reflect the average cost method.2. How much higher or lower would cost of goods sold be in the 2023 revised income statement?Complete this question by entering your answers in the tabs below.Required 1 Required 2How much higher or lower would cost of goods sold be in the 2023 revised income statement?Cost of goods sold for 2023 would be< Required 1in the revised income statement.Required 2 >

Introduction: A journal entry is a form of accounting entry where the transactions are being…

Book O Hint Print erences 2022 2023 81,600 87,800 72,200 81,600 Required: 1. Ignoring income taxes, prepare the 2024 journal entry to adjust the accounts to reflect the average cost method. 2. How much higher or lower would cost of goods sold be in the 2023 revised income statement? Complete this question by entering your answers in the tabs below. Required 1 Required 2 How much higher or lower would cost of goods sold be in the 2023 revised income statement? Cost of goods sold for 2023 would be in the revised income statement.