Johnston Controls began operation in $2021$ using FIFO inventory methods. In$2022,$ management decided they should have chosen LIFO to more accurately portray financial position and performance. The beginning $2022$ inventory using FIFO was

$ $180$ comma $000$$$180,000.$

Under the LIFO method the beginning inventory would have been

$ $220$ comma $000$$$220,000.$

The adjustment to inventory for the accounting principle change for $2021$ would be$\_\_\_\_\_\_\_\_.$

Question content area bottom

Part $1$

A$.$

$ $20$ comma $000$$$20,000$

debit

B$.$

$$$$0$

C$.$

$ $40$ comma $000$$$40,000$

credit

D$.$

$ $40$ comma $000$$$40,000$

debit