WP Question 5 (Read Only) + education.wiley.com/was/ui/v2/question-player/index.html?renderMode=readOnly&questionid=c582b3bb-2bad-40d9-b7db-09a2b19b46f6&questio... Q M Paused Read-Only. Return to the assignment to answer this question. OG/ACCONGROUND ACC-371 - TOPIC 7 ASSIGNMENT Question 5 Flint Company is in the process of adjusting and correcting its books at the end of 2025. In reviewing its records, the following information is compiled. 1. Flint has failed to accrue sales commissions payable at the end of each of the last 2 years, as follows. December 31, 2024 $3,600 December 31, 2025 2,600 2. In reviewing the December 31, 2025, inventory, Flint discovered errors in its inventory-taking procedures that have caused inventories for the last 3 years to be incorrect, as follows. December 31, 2023 Understated $15,700 December 31, 2024 Understated 19,500 December 31, 2025 Overstated 7,400 RETURN TO ASSIGNMENT Flint has already made an entry that established the incorrect December 31, 2025, inventory amount. 3. 4. At December 31, 2025, Flint decided to change the depreciation method on its office equipment from double-declining-balance to straight-line. The equipment had an original cost of $109,600 when purchased on January 1, 2023. It has a 10-year useful life and no salvage value. Depreciation expense recorded prior to 2025 under the double-declining-balance method was $39,000. Flint has already recorded 2025 depreciation expense of $12,000 using the double-declining-balance method. Before 2025, Flint accounted for its income from long-term construction contracts on the cost-recovery basis. Early in 2025, Flint changed to the percentage-of-completion basis for accounting purposes. It continues to use the cost-recovery method for tax purposes. Income for 2025 has been recorded using the percentage-of-completion method. The following information is available. Pretax Income Percentage-of-Completion Prior to 2025 $163,200 2025 Cost-Recovery $100,600 58,700 20,400 Prepare the journal entries necessary at December 31, 2025, to record the above corrections and changes. The books are still open for 2025. The income tax rate is 20%. Flint has not yet recorded its 2025 income tax expense and payable amounts so current-year tax effects may be ignored. Prior-year tax effects must be considered in item 4. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation 1. 2. 3. 4. Debit Credit