CALCULATOR PRINTER VERssON BACK NEXT Exercise 22-7 Below is the net income of Martinez Instrument Co, a private corporsation, computed under the three inventory methods using a periodic system FIFO Average Cost LIFO 2015 $28,000 $25,100 $21,600 2016 32,800 27,500 23,900 2017 28,300 26,200 22,900 31,500 2018 27,700 23,100 (Ignore tax considerations.) (a) Assume that in 2018 Martinez decided to change from the FIPO method to the average-cost method of pricing inventories. Prepare the jounal entry necessary for the change that took place during 2018, and show net income reported for 2015, 2016, 2017, and 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the anmounts.) Account Titles and Explanation Debit Credit 2018 2017 2016 2015 Net income (b) Assume that in 2018 Martinez, which had been using the LIFO method since incorporation in 2015, changed to the FIFO method of pridng inventories. Prepare the jounal entry necessary to record the change in 2018 and show net income reported for 2015, 2016, 2017, and 2018. (Credit account titles are automatically indented when amount is entered. De not indent manually. If mo entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit 2018 2017 2016 2015 Net income UNK TO TEXm