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Question - Jen Company decided to change its method of accounting from the cash basis to be accrual basis in 2015 because sale of inventories had become a material income-producing item. Its taxable income fro 2015 under the accrual basis was $250,000. It determined that the balances of accounts receivable, inventory, and accounts payable as of December 2014 were:
Accounts receivable $18,000
Inventory $14,000
Accounts payable $ 11,000
A) What is Jen Company's required adjustment due to the change in accounting methods?
B) What can Jen's company do with the adjustment?
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