In 2021, the taxpayer became ineligible to use the cash method of accounting. At the beginning of

Question:

In 2021, the taxpayer became ineligible to use the cash method of accounting. At the beginning of the year, accounts receivable totaled $240,000, accounts payable for merchandise totaled $80,000, and inventory on hand totaled $320,000. What is the amount of the adjustment due to the change in accounting method?

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