AmerisourceBergen is an American drug wholesale company. The company uses the LIFO inventory method for external reporting but maintains its internal records using FIFO. The following disclosure note was included in a recent quarterly report: 

5. Inventories (in part) Inventories are comprised of the following ($ in millions): 

The company’s income statements reported cost of goods sold of $148,598 million for the quarter ended September 30, 2017. 

Required: 

1. Assume that AmerisourceBergen adjusts the LIFO reserve at the end of its quarter. Prepare the September 30, 2017, adjusting entry to record the cost of goods sold adjustment. 

2. If AmerisourceBergen had used FIFO to report its inventories, what would cost of goods sold have been for the quarter ended September 30, 2017?

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September 30, September 30, 2017 2016 Inventories (under FIFO) $12,928 $12,349 Less: LIFO reserve (1,467) (1,625) Inventories (under LIFO) $11,461 $10,724