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In 20x8, after the financial statements for 20x7 were published, a company decided to switch from the FIFO method to Weighted Average in order to
In 20x8, after the financial statements for 20x7 were published, a company decided to switch from the FIFO method to Weighted Average in order to provide more relevant financial statement presentation. Inventory balances under both methods are as follows: December 31, 20x6 December 31, 20x7 FIFO $2.248.000 2,650,000 Weighted Average $2,193,000 2,570,000 The tax rates for 20x6 and 20x7 were 28% and 25%, respectively. Required Prepare the adjusting journal entry that would be recorded in 20x8, to adjust the accounts at the beginning of 20x8
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