Current Attempt in Progress

The first audit of the books of Sage Company was made for the year ended December $31,2026.$ In examining the books, the auditor found that certain items had been overlooked or incorrectly handled in the last $3$ years. These items are:

At the beginning of $2024,$ the company purchased a machine for $$480,000($salvage value of $$48,000)$ that had a useful life of $6$ years. The bookkeeper used straight$-$line depreciation but failed to deduct the salvage value in computing the depreciation base for the $3$ years.

At the end of $2025,$ the company failed to accrue sales salaries of $$42,000.$

A tax lawsuit that involved the year $2024$ was settled late in $2026.$ It was determined that the company owed an additional $$93,000$ in taxes related to $2024.$ The company did not record a liability in $2024$ or $2025$ because the possibility of loss was considered remote, and charged the $$93,000$ to a loss account in $2026.$

Sage Company purchased a copyright from another company early in $2024$ for $$45,000.$ Sage had not amortized the copyright because its value had not diminished. The copyright has a useful life at purchase of $20$ years.

In $2026,$ the company wrote off $$95,000$ of inventory considered to be obsolete; this loss was charged directly to Retained Earnings.

Prepare the journal entries necessary in $2026$ to correct the books, assuming that the books have not been closed, Disregard effects of corrections on income tax. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Round answers to $0$ decimal places, e$.$g$,1250.$ List all debit entries before credit entries.$)$

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