JenCo decided to switch from the average cost method of costing inventories to the FIFO method at the beginning of 2015. The inventory as reported at the end of 2014 using average cost would have been $50,000 higher using FIFO. Retained earnings had been reported at the end of 2014 as $800,000 (reflecting the average cost method). The change in method affects accounting income but not taxable income. The tax rate is 35%. a) Calculate the balance in retained earnings at the time of the change (beginning of 2015) as it would have been reported if FIFO had been used in prior years. Please make sure your final answer(s) are accurate to the nearest whole number. Balance at January 1, 2015 = $ b) Prepare the journal entry at the beginning of 2015 to record the change in policy. Enter an appropriate description, and enter the date in the format dd/mmm (ie. 15/Jan). Please make sure your final answer(s) are accurate to 2 decimal places. General Journal Page G4 Date Account/Explanation PR Debit Credit