Required information

Problem $20-3($Algo$)$ Change in inventory costing methods; comparative income statements $[$LO$20-2,20-$

$3]$

$[$The following information applies to the questions displayed below.$]$

Shown below are net income amounts as they would be determined by Roberti Steel Company by each of three different

inventory costing methods $($$ in thousands$).$

Required:

Assume that Roberti Steel Company used FIFO before $2024,$ and then in $2024$ decided to switch to average cost. Prepare the

journal entry to record the change in accounting principle. $($Ignore income tax effects.$)$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers

in thousands $($i$.$e$.,10,000$ should be entered as $10.$

Assume that Roberti Steel Company used FIFO before $2024,$ and then in $2024$ decided to switch to LIFO. Assume accounting

records are inadequate to determine LIFO information prior to $2024.$ Therefore, the $2023($$$570)$ and pre$-2023$ $$2,400$ data are not

available. Prepare the journal entry to record the change in accounting principle. $($Ignore income tax effects.$)$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers

in thousands $($i$.$e$.,10,000$ should be entered as $10).$

Assume that Roberti Steel Company used FIFO before $2024,$ and then in $2024$ decided to switch to LIFO cost. Roberti Steel

Company's records of inventory purchases and sales are not available for several previous years. Therefore, the pre$-2023$ LIFO

information $)$ is not available. However, Roberti Steel Company does have the information needed to apply LIFO on a

prospective basis beginning in $2023.$ Prepare the journal entry to record the change in accounting principle. $($Ignore income tax

effects.$)$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers

in thousands $($i$.$e$.,10,000$ should be entered as $10).$