OS PM Remaining 89 min. Question 3 Melissa Company's net incomes for the past three years are presented below (ignore taxes): 2022 2021 2020 $483,500 $432,000 $377,400 During the 2022 year-end audit, the following items come to your attention: 1. Melissa bought equipment on January 1, 2019 for $493,500 with a $39,000 estimated salvage value and a 6-year life. The company debited an expense account and credite (Straight-line method) 2. During 2022. Melissa changed from the straight-line method of depreciating its cement plant to the double-declining balance method. The following computations present de 2022 202 Straight-line 37,200 37,20 Double-declining 46,320 57.10 The net income for 2022 was computed using the double-declining balance bethod, on the January 1, 2022 book value, over the useful life remaining at that time. The depre 3. Melissa, in reviewing its provision for uncollectibles during 2022, has determined that 1% is the appropriate amount of bad debt expense to be charged to operations. The com the expense had been $19,800 and $9,000, respectively. The company recorded bad debt expense under the new rate for 2022. The company would have recorded $10,800 rate. Prepare in general journal form the entry necessary to correct the books for the transaction in part of this problem, assuming that the books have not been closed for the curr account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Tities and Explanation Debit Credit Compute the net income to be reported each year 2020 through 2022. Ignore taxes Net Income 2020 e here to search o OS PM Remaining 89 min. Question 3 Melissa Company's net incomes for the past three years are presented below (ignore taxes): 2022 2021 2020 $483,500 $432,000 $377,400 During the 2022 year-end audit, the following items come to your attention: 1. Melissa bought equipment on January 1, 2019 for $493,500 with a $39,000 estimated salvage value and a 6-year life. The company debited an expense account and credite (Straight-line method) 2. During 2022. Melissa changed from the straight-line method of depreciating its cement plant to the double-declining balance method. The following computations present de 2022 202 Straight-line 37,200 37,20 Double-declining 46,320 57.10 The net income for 2022 was computed using the double-declining balance bethod, on the January 1, 2022 book value, over the useful life remaining at that time. The depre 3. Melissa, in reviewing its provision for uncollectibles during 2022, has determined that 1% is the appropriate amount of bad debt expense to be charged to operations. The com the expense had been $19,800 and $9,000, respectively. The company recorded bad debt expense under the new rate for 2022. The company would have recorded $10,800 rate. Prepare in general journal form the entry necessary to correct the books for the transaction in part of this problem, assuming that the books have not been closed for the curr account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Tities and Explanation Debit Credit Compute the net income to be reported each year 2020 through 2022. Ignore taxes Net Income 2020 e here to search o
