Question #2 - Conceptual Framework - 15 marks - (Part A - 10 marks - 2 marks per entry) - (Part B - 5 marks - 1 mark per adjustment) An inexperienced accountant for Can't Add Company recorded the following transactions in the records of the company for the year ended December 31, 2021. The controller has questioned the appropriateness of the entries since she thinks that they have not been recorded in accordance with generally accepted accounting principles. Profit for the year, including the entries described below, is $ 200,000. 1. On January 1, the company president, the owner of the company, took a personal vacation trip to the Gasp. The trip cost $3,000. The accountant recorded the entry as follows: Travel Expense 3,000 Accounts Payable 3,000 2. The company purchased on account a wastebasket on December 31 at a cost of $ 20. The accountant made the following entry: Office Equipment 20 Accounts Payable 20 3. Merchandise inventory that cost $ 14,000 had a current net replacement value of $ 22,000. The accountant made the following entry as a result: Merchandise Inventory 8,000 Gain on fair value adjustment 8,000 4. Equipment with a fair market value of $ 15,000 was acquired in a liquidation sale for cash at a cost of $ 10,000. The accountant recorded the transaction as follows: Equipment 15,000 Cash 10,000 Gain on fair value adjustments 5,000 5. Can't Add uses the allowance method. A customer's account receivable for $ 17,000 was uncollectible and the following entry was made: Bad Debt Expense 17,000 Accounts Receivable 17,000 Required: a) For each of the above entries, indicate the concept or constraint that was violated. b) Determine the correct profit for 2021