John Olerud Ltd., a local retailing concern in the Bronx, New York, has decided to change from

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John Olerud Ltd., a local retailing concern in the Bronx, New York, has decided to change from the conventional retail inventory method to the LIFO retail method starting on January 1, 2026. The company recomputed its ending inventory for 2025 in accordance with the procedures necessary to switch to LIFO retail. The inventory computed was $212,600.


Instructions

Assuming that John Olerud Ltd.’s ending inventory for 2025 under the conventional retail inventory method was $205,000, prepare the appropriate journal entry on January 1, 2026.

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Intermediate Accounting

ISBN: 9781119790976

18th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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