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Haley Corporation began operations on December 31, 2015. The controller for Haley Corporation is concerned about certain business transactions that the company detected during 2017.

Haley Corporation began operations on December 31, 2015. The controller for Haley Corporation is concerned about certain business transactions that the company detected during 2017. The transactions at issue are presented below.

1. The company has decided to switch from the direct write-off method in accounting for bad debt expense(a non-GAAP Method) to the percentage -of-sales approach on December 31,2017. Assume that Haley Crop has recognized bad debt expense as the receivables have actually become uncollectible in the following amounts: 2016 2017 From 2016 sales: 31800 20000 From 2017 sales: 45000 The controller estimates that bad debt expense based on the percentage-of-sales approach should be 54000 for 2016 and 83000 for 2017. Provide Journal Entries for 2017

2.Inventory has been shipped on consignment. These transactions have been recorded as ordinary sales and billed as such on account. Inventory billed and in the hands of consignees amount to 280,000 at december 2016 and 425000 at december 31 2017. The cost of goods sold is 80% of the selling price in each year. Assume that all the consigned inventory is sold in the following year. The company uses the perpetual inventory system. Need: Journal Entries

3.Ending inventory was overstated by 8000 on December 31,2016 and overstated by 5000 on december 31 2017. Need: Journal Entires

4. On January 1, 2016 a truck had been purchased for 28,000. The truck had an estimated life of eight years but it was immediately expensed in error. Straight-line depreciation with 2000 salvage value should have been used.

Assuming the books had not been closed, prepare the journal entries necessary at December 31, 2017

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