Assignment #C Chapter#$21$For three years the Sandy Caven Company failed to recognize accruals, prepayments, and other transactions in its accounts. Reported net income and a listing of the errors appear below$\mathrm{.}20$X$320$X$220$X$1$Reported net income $($losS $...........$S $(1,000)$$ $4,000$$ $12,000$raller to recoro accrued revenues$4,8002,5002,000$Failed to record uncollectible accounts expense$200800$Failed to record accrued salaries$1,800$Understated depreciation expense$1,5001,500$Goodwill purchased and expensed $($Should be Reviewed for Impairment$)1\mathrm{.}000$Overstated ending inventories $....$nil$2\mathrm{.}8005\mathrm{.}000$Failed to record purchase on account; merchandise properly includedIn ending inventory......$\mathrm{.}4,000$nilnil$9.$Failed to recognize unused supplies as an asset$400$nil$30010.$Failed to recognize gain on sale of land; nilnil$60011.$Failed to recognize unearnedrevenue at end of year$900500$Note: Goodwill was Impaired by $10\mathrm{.}0\%$ Each Year!Required:$1.$ Recalculate the correct$/$adjusted net income for each year$\mathrm{.}2.$ Pres a un at no$,$ havesar, te orse enore if at the end of$3.$ Roos assuming thate hooki have an$,$ do so$.$ the tocks at