Exercise 22-2 Sheridan Company began operations on January 1, 2015, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2018. The following information is available for the years 2015-2017 Net Income Computed Using Average-Cost Method FIFO Method LIFO Method 2015 2016 2017 15,860 17,980 20,130 $18,880 20,820 25,190 $12,000 14,050 17,060 (a) Prepare the journal entry necessary to record a change from the average cost method to the FIFO method in 2018. (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 nventory ained Earnings (b) Determine net income to be reported for 2015, 2016, and 2017, after giving effect to the change in accounting principle. Net Income 2015 2016 2017 (c) Assume Sheridan Company used the LIFO method instead of the average cost method during the years 2015-2017. In 2018, Sheridan 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 0 for the amounts.) Account Titles and Explanation Inventory Retained Earnings Debit Credit