40----- Jen Company decided to change its method of accounting from the cash basis to be accrual basis in 2015 because sale of inventories had become a material income-producing item. Its taxable income fro 2015 under the accrual basis was $250,000. It determined that the balances of accounts receivable, inventory, and accounts payable as of December 2014 were:

Accounts receivable $18,000

Inventory $14,000

Accounts payable $ 11,000

A) What is Jen Companys required adjustment due to the change in accounting methods?

B) What can Jens company do with the adjustment?