Sandhill Inc. began operations on January $1,2023,$ and uses the FIFO method of pricing inventory. Management is contemplating a

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

$($a$)$

Prepare the journal entry necessary to record a change from the FIFO method to the average cost method in $2026.($Ignore tax

considerations.$)($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 $0$ for the amounts. List debit entry before credit entry.$)$

Account Titles and Explanation

Debit

Credit