Novak Inc. began operations on January 1, 2018, and uses the FIFO method of pricing inventory. Management is contemplating a change in inventory methods for 2021 The following information s available for the years 2018-2020: Net Income Computed Using Average-Cost Method FIFO Method 2018 2019 2020 LIFO Method $101,000 $115,000 $80,000 67,000 79,000 50,000 154,000 167,000 129,000 (a) Prepare the journal entry necessary to record a change from the FIFO method to the average cost method in 2021. (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 Inventory Debit 13000 Credit Retained Earnings 13000 (b) Determine net income to be reported for 2018, 2019, and 2020, after giving effect to the change in accounting principle. 2018 2019 LA $ Net Income 115000 79000 2020 $ 167000 (c) Assume Novak Inc. used the average cost method instead of the FIFO method during the years 2018-2020. In 2021, Novak changed to the LIFO method. Assume Novak deems the determination of the change to LIFO to be impractical. Prepare the journal entry necessary to record the change in principle. (Credit account titles are automatically indented when amount is entered. Do not inder manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Inventory Retained Earnings Debit 38000 Credit 38000