Johnston Controls began operation in 2014 using FIFO inventory methods.In 2015,management decided they should have chose LIFO.The beginning 2015 inventory using FIFO was $100,000.Under the LIFO method the beginning inventory would have been $120,000.
Required: Prepare the journal entry to record the change in accounting principle and discuss the required disclosures.

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The Answer of Johnston Controls began operation in 2014 using FIFO inventory methods.In 2015,management decided they should have chose LIFO.The beginning 2015 inventory using FIFO was $100,000.Under the LIFO method the beginning inventory would have been $120,000.
Required: Prepare the journal entry to record the change in accounting principle and discuss the required disclosures.

Johnston Controls Began Operation in 2014 Using FIFO Inventory Methods