Change in inventory methods
Response to the following problem:
In 2016, the Barton and Barton Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 2015, B & B's inventories were $32 million (FIFO). B & B's records indicated that the inventories would have totaled $23.8 million at December 31, 2015, if determined on an average cost basis. Ignoring income taxes, what journal entry will B & B use to record the adjustment in 2016? Briefly describe other steps B & B should take to report the change.