Business, 14.12.2019 02:31 woodsjnjoseph3

In 20x2, the robinson company switched its inventory method from fifo to average cost. inventories at the end of 20x1 were reported in the balance sheet at $22 million. if the average cost method had been used, 20x1 ending inventory would have been $20 million. ending inventory in 20x2 is $23 million using average cost, and would have been $26 million if the company had not switched from the fifo method. the journal entry to adjust the accounts to reflect the average cost method would be:

a. debit retained earnings and credit twentory for $2 million
b. debit retained earnings and credit inventory for $3 million
c. debit inventory and credit retained earnings for $1 million
d. debit inventory and credit cost of goods sold for $3 million,

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In 20x2, the robinson company switched its inventory method from fifo to average cost. inventories a...