Clemson Construction has following information related to its financial statements in 2021: (30 Points) points Save Ansv (1) Clemson changed inventory cost methods from LIFO to weighted-average method at the end of 2021 for both financial statement and income tax purposes. The change will cause a $200,000 decrease in the beginning inventory on January 1, 2021. (2) The physical inventory count on December 31, 2020, improperly missed (understated) merchandise costing $28,000 that had been temporarily stored in a public warehouse. Clemson uses a periodic inventory system. (3) Effective January 1, 2021, the company changed the salvage value used in calculating depreciation for its factory. The factory cost $2,100,000 on January 1, 2016 and has been depreciated on a straight-line basis assuming a useful life of 30 years and a salvage value of $300,000. New evidence indicates that the salvage value will be no more than $200,000 and its useful life will be no more than 25 years. (4) Clemson collected $14,000 from a customer due to credit sales on December 30, 2020. However, the amount was not recorded until January 3, 2021. (5) At the beginning of 2019, Clemson bought a computer at a cost of $4,200. Its useful life was estimated to be 5 years with the salvage value of $200. The machine has been depreciated by the straight line method. On January 1, 2021, the company changed to double declining balance method. (6) In 2021, Clemson's internal auditors discovered the correct balance of accrued utilities bills (payable) by December 31, 2020, should be $44,000. Clemson incorrectly accrued $4,400 in its 2020 financial statements. (7) Clemson determined bad debt expenses each year as 2% of sales. Actual collection experience of recent years indicates that 1.5% is a better indication. Management effects the change in 2021. Credit sales for 2020 were $8,245,000 and accounts receivable balance by 2020 was 1,236,845, in 2021 they are $8,640,000 and 1,346,711 respectively.