XYZ Corp has used the FIFO method of inventory costing during its first year of operations. The firm then changed to the Average Cost method. For year 1, under LIFO, the Pretax income was $120,000. Had the company used Average Cost that year, the pretax income would have been $190,000.XYZ's tax rate is 30%. In the prior period adjusting entry, what is recorded for Cost of Goods Sold? To A Debit $ 70,000 O B Credit $ 70,000 O c Debit $ 49,000 O D Credit $ 49,000 O E No entry for COGS In the prior period adjusting entry, what is recorded for Inventory? O A Debit $ 49,000 O B Credit $ 49,000 O c Credit $ 70,000 O D Debit $ 70,000 O E No entry for Inventory In the prior period adjusting entry, what is recorded for Income Tax Payable? O A Debit $ 21,000 o B Credit $ 21,000 O C Debit $ 49,000 O D Credit $ 49,000 O E No entry for income tax payable In the prior period adjusting entry, what is recorded for Retained Earnings? O A Debit $ 70,000 O B Credit $ 70,000 o c Credit $ 49,000 o D Debit $ 49,000 o E Credit $ 21,000