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.' _ Halloween lCorp. reported net inoomes for the last three years as follows: 2MB\" 2D19 EDIE S 249,001} $ 225,9\") 5 l During the ZDZD year-end audit, the following items come to your attention: 1. Halloween bought a truck on January 1, 2-31? for $98,001:) cash, with an $3.13)!) estimated residual value and a six-year life. The company debited an expense account for the entire cost of the asset. Halloween uses straight-line depreciation for all trucks. 2. During 2am. Halloween changed from straight-line depreciation for its cement plant to double declining balance. The following calculations present depreciation on both bases: 292E ll Zl Straight-line $ 18,DGD $ 13,900 $ l' Doubledecl'lning balance 23,1D 39,000 35.00!) The net income for 202d was calculated using the double declining balance method. 3. In reviewing its provision for uncollectible accounts during 102D, the corporation has determined that 1% is the appropriate amount of bad debt expense to be charged to operations. The company had used 1.-'2 of 1% as its rate in 2-319 and 2018 when the expense had been S 9pm: and 56,000, respectively. Halloween recorded bad debt expense using the new rate for men. If they had used the old rate. they would have recorded 5 3,000 less bad debt expense on December 31, 202:). a. Prepare the general journal entryr required to correct the books for the item 1 situation {only} of this problem, assuming that the books have not been closed for 2020. b. Present comparative income statement data for the years EDIE to 202D, starting with income before the cumulative effect of any accounting changes. c. Assume that the beginning retained earnings balance {unadjusted} for 2o1a was S. At what adjusted amount should the beginning retained earnings balance for 2018 be shown. assuming that oomparative financial statements were prepared