Below is the net income of Martinez Instrument Co., a private corporation, computed under the three inventory methods using a periodic system. FIFO Average-Cost LIFO 2023 $28,000 $25,100 $21,600 2024 32,800 27,500 23,900 2025 28,300 26,200 22,900 2026 31,500 27,700 23,100 (Ignore tax considerations.) (a1) Assume that in 2026 Martinez decided to change from the FIFO method to the average-cost method of pricing inventories. Prepare the journal entry necessary for the change that took place during 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 0 for the amounts. List debit entry before credit entry.) Account Titles and Explanation Debit Credit
Below is the net income of Martinez Instrument Co., a private corporation, computed under the three inventory methods using a periodic system. FIFO Average-Cost LIFO 2023 $28,000 $25,100 $21,600 2024 32,800 27,500 23,900 2025 28,300 26,200 22,900 2026 31,500 27,700 23,100 (Ignore tax considerations.) (a1) Assume that in 2026 Martinez decided to change from the FIFO method to the average-cost method of pricing inventories. Prepare the journal entry necessary for the change that took place during 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 0 for the amounts. List debit entry before credit entry.) Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Alpesh
Transcribed Image Text:Below is the net income of Martinez Instrument Co., a private corporation, computed under the three inventory methods using
periodic system.
FIFO
Average-Cost
LIFO
2023
$28,000
$25,100
$21,600
2024
32,800
27,500
23,900
2025
28,300
26,200
22,900
2026
31,500
27,700
23,100
(Ignore tax considerations.)
(a1)
Assume that in 2026 Martinez decided to change from the FIFO method to the average-cost method of pricing inventories.
Prepare the journal entry necessary for the change that took place during 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
Debit
Credit
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