Question: In 2022, Pluto, Inc. decided to switch from traditional LIFO to Dollar Value LIFO. Under traditional LIFO, ending inventory in 2021 (the company's first year) was $2,521,000 and COGS was $14,622,000. Under Dollar Value LIFO, ending inventory in 2021 was $2,470,580 and COGS was $14,672,420. What will be the adjustment to inventory if the company changes from traditional to Dollar Value LIFO on December 31, 2022?
- Credit of $100,840
- Debit of $50,420
- Credit of $50,420
- There is not enough information provided to answer this question.