Problem 154 Klein Book Store uses the conventional retail method and is now considering converting to the LIFO retail method for the period beginning 1/1/18. Available information consists of the following: 2017 2018 Cost Retail Cost Retail Inventory 1/1 $12,500 $22,500 $ ? $ ? Purchases (net) 250,000 347,500 245,000 345,000 Net markups - 5,000 - 10,000 Net markdowns - 2,500 - 5,000 Sales (net) - 322,000 - 327,500 Loss from breakage - 500 - -0- Applicable price index - 100 - 110 Following is a schedule showing the computation of the cost of inventory on hand at 12/31/14 based on the conventional retail method. Cost Retail Ratio Inventory 1/1/17 $12,500 $22,500 Purchases (net) 250,000 347,500 Net markups - 5,000 Goods available $262,500 375,000 70% Sales (net) (322,000) Net markdowns (2,500) Loss from breakage (500) Inventory 12/31/17 at retail $50,000 Inventory 12/31/17 at LCM ($50,000 70%) $35,000 Prepare the journal entry to convert the inventory from the conventional retail to the LIFO retail method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS Prepare a schedule showing the computation of the 12/31/18 inventory based on the LIFO retail method as adjusted for fluctuating prices. Without prejudice to your answer to (a) above, assume that you computed the 1/1/18 inventory (retail value $49,000) under the LIFO retail method at a cost of $34,000. (Do not leave any answer field blank. Enter 0 for amounts.) Cost Retail Ratio Inventory $ $ Purchases Net markups Net markdowns Total % Total goods available $ Sales Ending inventory at retailend of year dollars $ Ending inventory deflated $ $ Beginning Layer added $ Ending inventory at cost $