Question: 2. Cabinets for Less uses FIFO for internal reporting purposes and LIFO for financial and income tax purposes. At the end of 2022, the following

2. Cabinets for Less uses FIFO for internal reporting purposes and LIFO for financial and income tax purposes. At the end of 2022, the following information was obtained from the inventory records: 12312022 Ending inventory at FIFO $93.250 Ending inventory at LIFO 68,500 Required (11 points): 1. Prepare the necessary adjusting journal entry assuming that Cabinets for Less converts the accounts to LIFO at the end of 2022 2012021 $78,650 78.350 2. Indicate how Cabinets for Less would disclose the inventory value on its comparative balance sheets prepared at the end of 2022. 3. If Ending inventory at FIFO for 2022 remains at $93,250 but Ending inventory at LIFO for 2022 is $84.350, prepare the necessary adjusting journal entry to convert the accounts to LIFO at the end of 2022

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