Shown below are net income amounts as they would be determined by Roberti Steel Company by each of three different inventory costing methods $($$ in thousands$).$

FIFO Average Cost LIFO

Pre$-2023$ $ $2,820$ $ $2,560$ $ $2,300$

$2023760590545$

$ $3,580$ $ $3,150$ $ $2,845$

Required:

$1.$ Assume that Roberti Steel Company used FIFO before $2024,$ and then in $2024$ decided to switch to average cost. Prepare the journal entry to record the change in accounting principle. $($Ignore income tax effects.$)$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in thousands $($i$.$e$.,10,000$ should be entered as $10.$

NOTE: The journal entry of retained earnings and inventory are marked correct in the photo. However, the numbers corresponding to those accounts are INCORRECT.