ABC Ltd. bought equipment January 1, 2017 for $70,000 with a $20,000 estimated residual value and a 5-year useful life. The company incorrectly debited a miscellaneous expense account and correctly credited cash on the 2017 purchase date. The equipment is still expected to be traded at the end of 2022 for $20,000. ABC Ltd. uses straight-line amortization for its equipment.

Prepare the required adjustments in 2021