An effective process of capital allocation is critical to a healthy economy, Why? (1 mark) 2. In 2020, Magdi Co. determined that it incorrectly overstated its accounts receivable and sales revenue by $100,000 in 2018. What is the entry should the company makes in 2020 to correct this error? (ignore income taxes). (2 marks) 3. In 2021, Sameh Corporation reported net income of $1,000,000. It declared and paid preferred stock dividends of $250,000. During 2021, Sameh had a weighted average of 300,000 common shares outstanding. Compute Sameh's 2021 earnings per share. (2 marks) Assume that at the end of the reporting period, the perpetual inventory account reported an inventory balance of $4,000. However, a physical count indicates inventory of $3,800 is actually on hand. Prepare the adjusting entries to record the necessary write-down of invent 1. (2 marks)