In $2024,$ CPS Company changed its method of valuing inventory from the FIFO method to the average cost method. At December $31,$

$2023,$ CPS$\text{'}$s inventories were $$39$ million $($FIFO$).$ CPS$\text{'}$s records indicated that the inventories would have totaled $$29\mathrm{.}4$ million at

December $31,2023,$ if determined on an average cost basis.

Required:

Prepare the journal entry to record the adjustment. $($Ignore income taxes.$)$

Note: Enter your answers in millions rounded to $1$ decimal place $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$ If no entry is required

for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

Record the adjustment necessary to reflect the average cost method.

Note: Enter debits before credits.