Question - The reported net incomes for the first 2 years of Blossom Products, Inc., were as follows: 2017, $147,800; 2018, $202,000. Early in 2019, the following errors were discovered.
1. Depreciation of equipment for 2017 was overstated $15,900.
2. Depreciation of equipment for 2018 was understated $38,300.
3. December 31, 2017, inventory was understated $49,500.
4. December 31, 2018, inventory was overstated $14,900.
Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed. (Ignore income tax considerations.)