Question $2$ of $4$

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Flounder Company began operations on January $1,2023,$ and uses the average$-$cost method of pricing inventory. Management is

contemplating a change in inventory methods for $2026.$ The following information is available for the years $2023-2025.$

$($Ignore all tax effects.$)$

$($a$)$

Prepare the Journal entry necessary to record a change from the average cost method to the FIFO Method in $2026$