what would the adjusting entry be? LIFO reserve on the unadjusted trail balance...
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Accounting
what would the adjusting entry be?
LIFO reserve on the unadjusted trail balance is a credit of $32,000
n. Accounting Creations uses the Dollar Value LIFO inventory method. For internal purposes, the Merchandise Inventory Account is maintained at FIFO (current costs). At the end of the year, the LIFO reserve account is adjusted so inventory on the balance sheet reflects Dollar Value LIFO. You need to calculate the proper inventory balance and adjust the LIFO reserve. The price index for this year is 1.26. Prior year inventory records show the following calculation for 2019: 175,000 X 1.0 = 175,000 100,000 X 1.08 = 108,000 n. Accounting Creations uses the Dollar Value LIFO inventory method. For internal purposes, the Merchandise Inventory Account is maintained at FIFO (current costs). At the end of the year, the LIFO reserve account is adjusted so inventory on the balance sheet reflects Dollar Value LIFO. You need to calculate the proper inventory balance and adjust the LIFO reserve. The price index for this year is 1.26. Prior year inventory records show the following calculation for 2019: 175,000 X 1.0 = 175,000 100,000 X 1.08 = 108,000
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