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MrMuchimi
3 years ago
8

Nidal Company reported inventory in the 2020 year-end balance sheet, using the FIFO method, as $185,000. In 2021, the company de

cided to change its inventory method to average cost. If the company had used the average cost method in 2020, ending inventory would have been $171,000. What adjustment would Nidal make for this change in inventory method
Business
2 answers:
Ksenya-84 [330]3 years ago
3 0

Answer:

Dr Retained earnings $14,000

Cr Inventory $14,000

Explanation:

There is a need to make adjustment to the inventory . Therefore,

Adjusted inventory

= New method of $171,000 - Old method of $185,000

= $14,000 decrease

It is to be noted that a lower inventory will have high costs associated with goods sold hence reduces profit/net income for the previous year by $14,000.

Also, the net income reports to retained earnings account hence decreases retained earnings.

Having made the above adjustment, we can assume that the average cost method was used for 2020 books.

salantis [7]3 years ago
3 0

Answer:

Dr Retained earnings for $14,000

Cr Inventory for $14,000

Explanation:

Calculation of the adjustment that Nidal would make for this change in inventory method

Based of the information given the adjustment will records the decrease in inventory of $14,000 which is calculated as ( Inventory of $185,000 − Ending inventory of $171,000) as well as the decrease in retained earnings, just as if average cost had been used in 2020.]

Therefore the adjustment that Nidal would make for this change in inventory method will be:

Dr Retained earnings for $14,000

Cr Inventory for $14,000.

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The correct approach will be "Social media ".

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3 years ago
Your payment of $123005.12 was received on June 3 2006 by our offices in Macon Georgia. Your payment of $123,005.12 was received
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Answer:

Your payment of $123,005.12 was received on June 3, 2006, by our offices in Macon, Georgia.

Explanation:

Period are placed between the digits of written Numbers or figures use to separate different places like thousands, millions etc. starting leftward from the decimal point Just like $123,005.12. While for a three-part date, commas are placed between   the date with month and year . It will be June 3, 2006. The name of a place which mention the city and country require a comma between the city name and country name like Macon, Georgia.

The correct punctuated statement is " Your payment of $123,005.12 was received on June 3, 2006, by our offices in Macon, Georgia."

Corrections are

Your payment of $123005.12 was received on June 3 2006 by our offices in Macon Georgia.

No commas have been used in Figures, date and Place name.

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The Periods in figure are missing, it should be as $123,005.12

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