Pace Instrument Corp., a small company that follows ASPE, began operations on January 1, 2017, and uses a periodic inventory system. The following net income amounts were calculated for Pace under three different inventory cost formulas: FIFO Weighted Average Cost LIFO 2017 $27,710 $24,120 $20,800 2018 30,600 25,260 21,700 2019 28,920 27,420 24,260 2020 34,630 30,330 26,300 Answer the following ignoring income tax considerations. Your answer is partially correct. Assume that in 2020, Pace changed from the weighted average cost formula to the FIFO cost formula and it was agreed that the FIFO method provided more relevant financial statement information. Prepare the necessary journal entry for the change that took place during 2020. (Credit account titles are automatically indented when the 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 Debit Credit Inventory Retained Earnings 9930 9930 -Your answer is partially correct. Assume that in 2020, Pace, which had been using the LIFO method since incorporation in 2017, changed to the FIFO cost formula in order to comply with CPA Canada Handbook, Part II, Section 3031, because LIFO is not a permitted inventory cost flow assumption under GAAP. The company applies the new policy retrospectively. Prepare the necessary journal entry for the change. (Credit account titles are automatically indented when the 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 Retained Earnings Debit 19970 Credit 19970