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).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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