2023 2024 2025 Net Income Computed Using Average-Cost Method $15,000 18,000 20,000 gnore all tax effects.) FIFO Method Your answer is partially correct. $19,000 23,000 25,000 LIFO Method $12,000 14,000 17,000 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.)
2023 2024 2025 Net Income Computed Using Average-Cost Method $15,000 18,000 20,000 gnore all tax effects.) FIFO Method Your answer is partially correct. $19,000 23,000 25,000 LIFO Method $12,000 14,000 17,000 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject:
Transcribed Image Text:2023
2024
2025
Net Income Computed Using
Average-Cost Method FIFO Method LIFO Method
$15,000
$19,000
$12,000
18,000
23,000
14,000
20,000
25,000
(Ignore all tax effects.)
(a)
Your answer is partially correct.
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.)
Account Titles and Explanation
Inventory
17,000
Retained Earnings
Debit
7000
Credit
5000
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