intermediate accounting

image0.xlsx Record Plato Industries December 31st, 2022 journal entry to adjust the company's LIFO reserve to its target balance. Hint: The company's LIFO reserve would have already had a balance at the beginning of 2022; the adjusting entry should only be for the amount necessary to increase or decrease the LIFO reserve balance from its 2022 beginning balance to the necessary amount at the end of 2022 fiscal year. \begin{tabular}{|l|l|l|l|} \hline sales revenue & & \\ \hline COGS & & \\ \hline & Gross profit & & \\ \hline \end{tabular} Requirement Three Plato Industries elects to report its inventory "net." In other words, the company reports only the LIFO amount but discloses information about its inventory's FIFO value in the notes to the balance sheet. Determine what inventory balance Paraphet would disclose on its financial statement and write a note to inform users of Paraphet's financial information about the FIFO value of the company's inventory. Plato Industries Balance Sheet (Partial) December 31, 2022 Inventory, net (a) Notes to Balance Sheet