Question 4.5 Assu me Deloitte 8; Touche, the accounting rm, advises Deep Sea Seafood that their nancial statements must be changed to conform with 6MP. At December 31, 2016, Deep Sea Seafood accounts include the fol Iowing: Cash 'Ibtal current liabies Deloitte & Touche advised Deep Sea Seafood (10. that: 0 Cash includes $20,000 that is deposited in a compensating balance account that is tied up until 2013. 0 The fair value of the short-term trading investments is $1?,000. Deep Sea Seafood purchased the investments a couple of weeks ago. . Deep Sea Seafood has been using the direct writeoff method to account for uncollectible receivables. During 2016, Deep Sea Seafood wrote off bad receivables of $7,000. Deloitte S; Touche determines that bad debt expense for the year should be 2.5% of sales revenue, which totaled $600,000 in 2016. I. Deep Sea Seafood reported net income of $92,000 in 2016. 1. Restate Deep Sea Seafood's current accounts to conform to (3MP