Journal entries to correct errors and adjust for changes in estimates. Prepare journal entries to record each of the following items for Uncertainty Coiporation for Year 13. Ignore income tax effects.

a. Discovers on January 15. Year 13. that it neglected to amortize a patent during Year 12 in the amount of $12,000.

b. Discovers on January 20. Year 13. that it recorded the sale of a machine on December 30. Year 12. for $6,000 with the following journal entry:

The machine had accumulated depreciation of $7,000 on the date of the sale.

c. Changes the depreciable life of a building as of December 31. Year 13. from a total useful life of 30 years to a total of 42 years. The building has an acquisition cost of $2,400,000 and is 1 1 years old as of December 31. Year 13. The firm has not recorded depreciation for Year 13. It uses the straight-line method and zero estimated salvage value.

d. The firm has used 2 percent of sales as its estimate of uncollectible accounts for several years. Its actual losses have averaged only 1 .50 percent of sales. As a consequence, the Allowance for Estimated Uncollectibles account has a credit balance of $25,000 at the end of Year 13 before making the provision for bad debt expense (see the glossary at provision) for Year 13. An aging of customers" accounts suggests that the firm needs $35,000 in the allowance account at the end of Year 13 to cover estimated uncollectibles. Sales for Year 13 are $1,000,000.

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Cash- 6,000 Loss on Sale of Machine 4,000 Machine (acquisition cost) 10,000