Req 3 and 4: Determine the balance in retained earnings at January 1, 2023, as Fieri reported using the FIFO method and determine the adjustment of the balance in retained earnings as on January 1, 2023, using the average method instead of the FIFO method. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
Req 1
Req 2
Req 3 and 4: Prepare the journal entry at the beginning of 2024 to record the change in accounting principle. (Ignore income taxes.) Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).