2 of 8 View Policies Current Attempt in Progress - / 4 Sunland Company began operations on January 1, 2018, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2021. The following information is available for the years 2018-2020. Net Income Computed Using Average-Cost Method FIFO Method LIFO Method 2018 $16,000 $19,100 $12,080 2019 18,040 20,820 14,100 2020 20,010 24,800 16,840 (a) Prepare the journal entry necessary to record a change from the average cost method to the FIFO method in 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Inventory Retained Earnings Debit Credit (b) Determine net income to be reported for 2018, 2019, and 2020, after giving effect to the change in accounting principle. 2018 $ Net Income 2019 $ 2020 $ (c) Assume Sunland Company used the LIFO method instead of the average cost method during the years 2018-2020. In 2021, Sunland changed to the FIFO method. Prepare the journal entry necessary to record the change in principle. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) Prepare the journal entry necessary to record a change from the average cost method to the FIFO method in 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Inventory Debit Credit Retained Earnings (b) Determine net income to be reported for 2018, 2019, and 2020, after giving effect to the change in accounting principle. 2018 $ Net Income 2019 $ 2020 $ (c) Assume Sunland Company used the LIFO method instead of the average cost method during the years 2018-2020. In 2021, Sunland changed to the FIFO method. Prepare the journal entry necessary to record the change in principle. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Save for Later Last saved 2 minutes ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Attempts: 0 of 3 used Submit