Knowledge Check 01 Rhode, Inc., began business in Year 1. Inventory reported in the Year 3 year-end balance sheet, determined using the average cost method, was $170,000. In Year 4, the company decided to change its inventory method to FIFO. If the company had used the FIFO method in Year 3. ending inventory would have been $220,000. Prepare the appropriate journal entry to record this change. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction fist Journal entry worksheet Record the appropriate journal entry to record the change. Note: Enter debits before credits General Journal Debit Credit Event 01