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 2017 $27,390 2018 30,390 2019 28,580 2020 35,090 Weighted Average Cost $24,810 25,550 27,250 30,700 LIFO $20,130 21,680 25,030 26,760 Answer the following, ignoring income tax considerations. Your answer is partially correct. Try again. 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 14390 Retained Earnings 14390 Your answer is partially correct. Try again. 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 Debit Credit Inventory 27,850 Retained Earnings 127,850