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: Weighted Average Cost FIFO LIFO 2017 $27,730 $24,820 $20,930 2018 30,900 25,130 21,700 2019 28,770 27,410 24,480 2020 34,450 30,770 26,560 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.) ccount Titles and Explanation Debit Credit Inventory 12360 Retained Earnings 12360 e Textbook and Media List of Accounts 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.) count Titles and Explanation Debit Credit nventory 20220 Retained Earnings 20220