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Flay Foods has always used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2021, Hay decided to

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Flay Foods has always used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2021, Hay decided to change to the LIFO method. As a result of the change, net income in 2021 was $76 million. If the company had used LIFO in 2020. Its cost of goods sold would have been higher by S7 million that year Flay's records of inventory purchases and sales are not available for 2019 and several previous years. Last year . Hay reported the following net income amount is comparative income statements (5 in 1 10 Net income 2016 576 2019 2020 $78 Sae Required: 1. Prepare the joumal entry at the beginning of 2021 10 record the change in accounting principle ignore income Tarest 3. What amounts Will Flay report for net income in its 2019-2021 comparative Income statements? Complete this question by entering your answers in the tabs below Required: Required Drepare the journal entry at the beginning of 2025 to lead the change in accounting princible. Clone income taxes. er betontent electo jumaty gold in the first account Rela Enter your and to 10.000. OD Whould be tied as 1033 Wawacions Wiewowy wachal Debit -Credit NO Event General Journal R ===== entory Flay Foods has always used the FIFO Inventory costing method for both financial reporting and tax purposes. At the beginning of 2021, Hay decided to change to the LIFO method As a result of the change.net Income in 2021 was $76 milion, the company had used UFO 2020. Its cost of goods sold would have been higher by $7 million that year. Flay's records of arwentory purchases and sales are not available for 2019 and several previous years. Last year Flay reported the following net income amounts in its comparative Income statements RE Net income 2018 576 2019 2020 $78 $80 Required: 1. Prepare the journal entry at the beginning of 2021 to record the change in accounting principle (ignore Income taxes) 3. What amounts will Flay report for net income in its 2019-2021 comparative Income statements? Complete this question by entering your answers in the tabs below. Required 1 Required What amounts witFlay report for net income in its 2019-2021 Comparative income statemente in mulldo.dp should be les 101 2013 2070 son millions de income FIFO LFO aviso LIFO Regtered 1

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