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Flay Foods has always used the FIFO inventory costing method for both financial reporting and tax putposes. At the beginning of 2021 . Flay decided

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Flay Foods has always used the FIFO inventory costing method for both financial reporting and tax putposes. At the beginning of 2021 . Flay decided to change to the UFO method, As a result of the change, net income in 2021 was $85 mililon. If the company had used UFO in 2020, its cost of goods sold would have been higher by $7 milion that year. Flay's records of inventory purchases and sales are not available for 2019 and several previous years. Last year. Flax reported the following net income amounts in its comparative income statements: Required: 1. Prepare the joumal entry at the beginning of 2021 to record the change in accounting principle. (lgnore income taxes.) 3. What amounts will Flay report for net income in its 20192021 comparative income statements

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