Perth Company's net incomes for the past three years are presented below:

2023 2022 2021

$200,000 $190,000 $140,000

During the 2023 year-end audit, the following items come to your attention:

1. Perth bought a truck January 1, 2020 for $110,000 with an $10,000 estimated residual value and a five-year life. The company debited an expense account and credited cash on the purchase date for the entire cost of the asset. Perth uses the straight-line method for amortizing its vehicles.

2. During 2023, Perth changed from the straight-line method of amortizing its cement plant to the double-declining balance method. The following calculations present amortization for both methods`:

2023 2022 2021

Straight-line 20,000 20,000 20,000

Double-declining 30,000 35,000 40,000

The net income for 2023 was calculated on the double-declining balance method but no retroactive entries have been made.

3. Perth, in reviewing its provision for uncollectible accounts during 2023, has determined that 1.2% of sales is the appropriate amount of bad debt expense to be charged to operations. The company had used 1% as its rate in 2022 and 2021 when the expense had been $9,000 and $6,000, respectively. The company recorded bad debt expense under the new rate for 2023

Required:

Prepare in general journal form any entries necessary to correct the books, assuming that the books have not been closed for the current year, 2023. Ignore income taxes. If no entry is required, briefly explain why.

(b ) Calculate the comparative net incomes for 2023 and 2022, starting with income before the effects of any of changes identified above. Ignore all income tax effects.

	2023	2022
Net income as previously reported	$200,000	$190,000