mn Whispering Company began operations on January 1, 2023, and uses the average-cost method of pricing inventory. Management iscontemplating a change in inventory methods for 2026. The following information is available for the years 2023-2025.202320242025(Ignore all tax effects.)(a)Net Income Computed UsingAverage-Cost Method$15,90017,88020,180FIFO Method$19,170Account Titles and Explanation20,98025,060LIFO Method$12,11013,99017,120Prepare the journal entry necessary to record a change from the average-cost method to the FIFO method in 2026. (Credit accounttitles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for theaccount titles and enter O for the amounts. List debit entry before credit entry.)DebitCredit

Name: mn Whispering Company began operations on January 1, 2023, and uses th
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: mn Whispering Company began operations on January 1, 2023, and uses the average-cost method of pricing inventory. Management iscontemplating a change in inventory methods for 2026. The following information is available for the years 2023-2025.202320

The first in first out method is one of the important methods of valuing inventory in which the…

Business

Accounting

Whispering Company began operations on January 1, 2023, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2026. The following information is available for the years 2023-2025. 2023 2024 2025 Net Income Computed Using Average-Cost Method $15,900 17,880 20,180 FIFO Method LIFO Method $19,170 20,980 25,060 $12,110 13,990 17,120