Sage 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. 2023 2024 2025 (Ignore all tax effects.) (a) Net Income Computed Using Average-Cost Method $15,980 17,940 19,850 FIFO Method $19,010 Account Titles and Explanation 20,930 25,140 LIFO Method $11,880 13,920 17,140 Prepare the journal entry necessary to record a change from the average-cost method to the FIFO method in 2026. (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. List debit entry before credit entry.) Debit Credit

Sage 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. (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 ofor the amounts. List debit entry before credit entry.) Account Titles and Explanation Debit Credit