King Supply maintains its internal inventory records using perpetual FIFO, but for financial reporting purposes, reports ending inventory and cost of goods sold using periodic LIFO. At the beginning of the year, the company had a balance of $55,000 in its LIFO reserve account. By the end of the year, internal records reveal that FIFO ending inventory is $38,000 greater than LIFO ending inventory. Record the year-end adjusting entry for the LIFO reserve. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list View journal entry worksheet No Transaction General Journal A 1 Cost of goods sold LIFO reserve Debit Credit 38,000 38,000
King Supply maintains its internal inventory records using perpetual FIFO, but for financial reporting purposes, reports ending inventory and cost of goods sold using periodic LIFO. At the beginning of the year, the company had a balance of $55,000 in its LIFO reserve account. By the end of the year, internal records reveal that FIFO ending inventory is $38,000 greater than LIFO ending inventory. Record the year-end adjusting entry for the LIFO reserve. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list View journal entry worksheet No Transaction General Journal A 1 Cost of goods sold LIFO reserve Debit Credit 38,000 38,000
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:King Supply maintains its internal inventory records using perpetual FIFO, but for financial reporting purposes, reports ending
inventory and cost of goods sold using periodic LIFO. At the beginning of the year, the company had a balance of $55,000 in its LIFO
reserve account. By the end of the year, internal records reveal that FIFO ending inventory is $38,000 greater than LIFO ending
inventory.
Record the year-end adjusting entry for the LIFO reserve.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
View transaction list
View journal entry worksheet
No
Transaction
General Journal
A
1
Cost of goods sold
LIFO reserve
Debit
Credit
38,000
38,000
(x)
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