Required information [The following information applies to the questions displayed below.] Shown below are net income amounts as they would be determined by Weihrich Steel Company by each of three different inventory costing methods ($ in thousands). Pre-2020 2020 FIFO $2,800 750 $3,550 Average Cost $2,540 600 $3,140 LIFO $2,280 540 $2,820 Required: 1. Assume that Weihrich used FIFO before 2021, and then in 2021 decided to switch to average cost. Prepare the journal entry to record the change in accounting principle. (Ignore income tax effects.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands.) Journal entry worksheet < 1 > Record the change in accounting principle. Note: Enter debits before credits. General Journal Debit Credit Event 1 2. Assume that Weihrich used FIFO before 2021, and then in 2021 decided to switch to LIFO. Assume accounting records are inadequate to determine LIFO information prior to 2021. Therefore, the 2020 ($540) and pre-2020 ($2,280) data are not available. Prepare the journal entry to record the change in accounting principle. (Ignore income tax effects.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands.) 1 > Record the change in accounting principle. Note: Enter debits before credits. General Journal Debit Credit Event 1 Record entry clear entry View aeneraliournal 3. Assume that Weihrich used FIFO before 2021, and then in 2021 decided to switch to LIFO cost. Weihrich's records of inventory purchases and sales are not available for several previous years. Therefore, the pre-2020 LIFO information ($2,280) is not available. However, Weihrich does have the information needed to apply LIFO on a prospective basis beginning in 2020. Prepare the journal entry to record the change in accounting principle. (Ignore income tax effects.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands.) Journal entry worksheet < 1 > Record the change in accounting principle. Note: Enter debits before credits. General Journal Debit Credit Event 1
