a00m Reset Window Position Windows Window Current Attermpt in Progress Sage Compary is in the process of adjustingand correcting its bods at the end of 2025, In reviluingitercords, the following information is complied. 1. Sage has failed to accrue sales commistons poyble at the end of each of the last 2 years as follows. \begin{tabular}{rr} Decenter 31,2024 & \$8,400\\ December 31,2025 & 2,300\end{tabular}2. Inieviewing the becember 31,2005, inventory Sage dicovered errors inits inventory-taking procedures that have caused inventories for the last 3 years to be incorrect, as follows. \begin{tabular}{|lll|} December 31,2023 & Understated & \$17,400\\ December \$1,2024 & Understated & 18,600\\ December 31,2025 & Overstated & 7,000\end{tabular}5age has already made an entry that established the incorrect December 31,2025, inventory amount. 3. At December 34,2025, Sage decided to change the deprecistion method on its office equipment from double dedining: balance to straight-ine. The cquipment had an or ginal cost of \(\$ 100,000\) when purchased on January 1,2023, It has a 10-year usefulitie and no salvage value. Deperciation expense recerded pior to 2025 under the double declining balance method was \$37,200, Sage has already recorded 2025 deprecistion cypense of \$13,400 using the double-declining balance method. 4. Before 2025, Sage accounted for its income from Iong-term construction contracts on the cost-recovery basis. Carly in 2025, Sage changed to the per centage of completion basis for accounting purposes. It continues to use the cost recovery method for tax purposes. Income for 2025 has been recorded using the percentage-of-completion method. The following information iswailable: \begin{tabular}{|l|rr|}\hline \multicolumn{2}{|c|}{ Pretax Income }\\\hline Prior to 2025 & Percentage-of-Completion & Cost-Recovery \\\hline 2025 & \(\$ 138,400\) & \\\hline \end{tabular} Prepare the journal entries necessery at Decenber 31,2025, to record the ibore corrections and changes. The books are stillopen for 2025. The income tax ate is 20\% Sagghas nat yet recorded its 2025 income tix expenan and payabhemounts socurrent year tax seblientriaboforeondientiles)No. Account Titles and Explanation1.234.