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In 2013, Adonis Industries changed its method of valuing inventory from the average cost method to the FIFO method. At December 31, 2012, Adonis’s inventories were $48.4 million (average cost). Adonis’s records indicated that the inventories would have totaled $65.6 million at December 31, 2012, if determined on a FIFO basis.
Ignoring income taxes, what journal entry will Adonis use to record the adjustment in 2013?
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