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Carla Company began operations on January 1, 2018, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2021. The following information is available for the years 20182020.

		Net Income Computed Using
		Average-Cost Method		FIFO Method		LIFO Method
2018		$15,910		$18,950		$12,020
2019		18,030		21,160		13,990
2020		19,920		24,940		17,140

Question 1 of 5 -/1 E View Policies Current Attempt in Progress Carla Company began operations on January 1, 2018, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2021. The following information is available for the years 2018-2020. 2018 2019 2020 Net Income Computed Using Average-Cost Method FIFO Method $15,910 $18,950 18,030 21,160 19.920 24,940 LIFO Method $12,020 13,990 17,140 (a) Prepare the journal entry necessary to record a change from the average cost method to the FIFO method in 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Account Titles and Explanation Debit Credit (b) Determine net income to be reported for 2018, 2019, and 2020, after giving effect to the change in accounting principle. Net Income 2018 $ 2019 $ 2020 $ (c) Assume Carla Company used the LIFO method instead of the average cost method during the years 2018-2020. In 2021, Carla changed to the FIFO method. Prepare the journal entry necessary to record the change in principle. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Account Titles and Explanation Debit Credit