It is December 2023 and Sandhill Inc. recently hired a new accountant, Jodie Larson. Although Sandhill is a private company, it follows IFRS. As part of her preparation of the 2023 financial statements for Sandhill, Jodie has proposed the following accounting changes: 1. At December 31, 2022, Sandhill had a receivable of $230,000 from Michael Inc. on its statement of financial position that had been outstanding since mid-2021. In December 2023, Michael was declared bankrupt and no recovery is expected. Jodie proposes to write off the receivable in 2023 against retained earnings to correct a 2021 error.