Show the effects of the adjustment on the accounting


Last year bell-bottom jeans were fashionable and this year boot cut jeans are in style. A retail company's inventory has 375 bell-bottom jeans that cost $17.00 each and could be replaced for $15.00. The inventory also includes 1,000 boot cut jeans that cost $16.00 each and could be replaced for $19.00. Prepare the journal entry that would be used to make the adjustment, and show the effects of the adjustment on the accounting equation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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Accounting Basics: Show the effects of the adjustment on the accounting
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