Changes& Errors Cheap Corp. has hired you to straighten out their books and make some changes at December 31 r pooks are open for 2018. They are currently reporting $25,000 in net income, however you learn the following The merchadise inventory at December 31, 2017 was overstated by $8,000 (they use periodic inventory method). During 2016, extraordinary repairs were made to machinery which increased its life. The charge of $16,000 was made to repairs expense, however, it should have been made to machinery which is depreciated on a straight line basis over 8 years with no residual value. .A patent costing $9,350 has been amortized (straight line) for the past 7 years (excluding 2018) over its legal life of 17 years. It is now clear that technological changes will reduce the patent's useful life to 10 years. At the end of 2017, sales revenue collected in advance of $15,000 was included in 1998 sales revenue. It was earned early in 2018 During 2016, $18,000 spent on ordinary repairs to a machine that was acquired in 2010 was erroneously capitalized. The machine has an estimated useful life of 20 years and no residual value The rate for bad debts expense has been 2% of credit sales. In 2018, it is decided to change this rate to 1%. At the old rate, in 2017 the expense was $1,600, in 2017 it was $2,000. Expense for 2018 has not been recorded however, credit sales exceeded 2017 credit sales by 20% . At the beginning of 2016, a five year insurance policy of $4,500 was paid and charged to insurance expense at that time .At the end of 2017, $14,200 in accrued wages were not recorded. You have learned that unpaid wages at the end of 2018, also not recorded, total $13,600. The company has been using SYD depreciation with a four year life (no residual value) for computer equipment acquired in 2016 for $27,000. They would like to change to straight line effective in 2018. For each of the above individually, make an adjusting/correcting entry. Then compute what reported net income should be after all adjustments/corrections