Question

At the beginning of 2011, Tanham Company discovered the following errors made in the preceding two years:


Reported net income was $27,000 in 2009 and $35,000 in 2010. The allowance for doubtful accounts had a zero balance at the beginning of 2009. No accounts were written off during 2009 or 2010. Ignore income taxes.

Required
1. What is the correct net income for 2009 and 2010?
2. Prepare the adjusting journal entry in 2011 to correct theerrors.


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  • CreatedDecember 09, 2013
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