Gerald Co. decided to switch from the FIFO method of costing inventories to the average cost method at the beginning of 2016. At December 31, 2015, Geralds inventory using FIFO was $20,780. Gerald inventory using average cost would have been $42,520. Geralds tax rate is 30%.

What is the change to Retained Earnings? Indicate the amount and whether Retained Earnings would be debited (D) or Credited (C). Answer with the amount and either a D or C right beside the amount (no space. Example: if your answer is $1,000 debit, put 1,000D