Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2004 talented engineers with little business training. In 2016, the company was acquired by one of i customers. As part of an internal audit, the following facts were discovered. The audit occurre before any adjusting entries or closing entries were prepared. a. A five-year casualty insurance policy was purchased at the beginning of 2014 for 34,000 amount was debited to insurance expense at the time b. Effective January 1, 2016, the company changed the salvage value used in calculating de ts office building. The building cost $592,000 on December 29, 2005, and has been depre straight-line basis assuming a useful life of 40 years and a salvage value of $100,000. Dec physical inventory count using the periodic inventory system statement and income tax purposes. The change will cause a $950,000 increase in the be At the end of 2015, the company failed to accrue $15,300 of sales commissions earned by during 2015. The expense was recorded when the commissions were paid in early 2016 e. estimated to be 10 years with no salvage value. The machine has been depreciated by the declining balance method. Its book value on December 31, 2015, was S448,000. On Janu the company changed to the straight-line method g. Warranty expense is determined each year as 1% of sales. Actual payment experience of indicates that 0.75% is a better indication of the actual cost. Management effects the chan Credit sales for 2016 are $3,800,000; in 2015 they were $3,500,000 1. Identify whether it represents an accounting change or an error. If an accounting change, i type of change. For accounting errors, choose "Not applicable" 2. Prepare any joumal entry necessary as a direct result of the change or error correction as adjusting entry for 2016 related to the situation described. (Ignore tax effects.) (If no entry for a transaction/event, select "No journal entry required" in the first account field.) 9 2 Record adjusting journal entry for 2016 4 Record adjusting journal entry for 2016 5 Record entry necessary as a direct result of the change or 6 Record adjusting journal entry for 2016 Note :-journal entry has been entered