Ivanhoe Incorporated decided to change from the FIFO method of valuing inventory to the weighted average method in July 2017. The cumulative effect on prior years of retrospective application of the new inventory costing method was determined to be $27, 500 net of $5,000 tax. As prices are decreasing, cost of sales would be lower and ending inventory higher for the preceding period. Retained earnings on January 1, 2017 was $250,000. (a1) Prepare a partial statement of retained earnings illustrating the adjusted balance of retained earnings