Required Information Exercise 5-6A Income tax effect of shifting from FIFO to LIFO LO 5-1 [The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company during Year 2: Jan. 1 Apr. 1 Oct. 1 Beginning Inventory Purchased Purchased 400 units @ $30 2,eee units @ 35 500 units @ $38 During Year 2. Parvin sold 2.700 units of inventory at $90 per unit and incurred $41.500 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $75.000, inventory of $12,000, common stock of $50,000, and retained earnings of $37.000. Exercise 5-6A Part a Required a. Record the above transactions in general joumal form and post to T-accounts using (1) FIFO and (2) LIFO. Use a separate set of joumal entries and T-accounts for each method. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) FIFO View transaction list Journal entry worksheet Record entry merchandise inventory purchased for cash. Note: Enter debits before credits Date General Journal Merchandise inventory Debit Credit nces Apr 01 Record entry Clear entry View general journal