RECOMMENDED!!ACCOUNTING 334-Melas Company changed from the LIFO

  

Melas Company changed from the LIFO to the FIFO inventory costing method on January 1, Year 3. Inventory values at the end of each year since the inception of the company are as follows: FIFO LIFOYear 1 $195,000 $177,500Year 2 390,000 355,000Ignoring income tax considerations, prepare the appropriate journal entry, dated January 1, Year 3, to report this accounting change. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)

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