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Sarasota Company is in the process of adjusting and correcting its books at the end of 2020 . In reviewing its records, the following information is compiled. 1. Sarasota has failed to accrue sales commissions payable at the end of each of the last 2 years, as follows. 2. In reviewing the December 31, 2020, inventory, Sarasota discovered errors in its inventory-taking procedures that have caused inventories for the last 3 years to be incorrect, as follows. Sarasota has already made an entry that established the incorrect December 31,2020 , inventory amount. 3. At December 31, 2020, Sarasota decided to change the depreciation method on its office equipment from double-decliningbalance to straight-line. The equipment had an original cost of $104,000 when purchased on January 1,2018 . It has a 10 -year useful life and no salvage value. Depreciation expense recorded prior to 2020 under the double-declining-balance method was $38,200. Sarasota has already recorded 2020 depreciation expense of $13,800 using the double-declining-balance method. 4. Before 2020, Sarasota accounted for its income from long-term construction contracts on the completed-contract basis. Early in 2020, Sarasota changed to the percentage-of-completion basis for accounting purposes. It continues to use the completed-contract method for tax purposes. Income for 2020 has been recorded using the percentage-of-completion method. The following information is available. No. Account Titles and Explanation 1. Retained Earnings Sales Commission Payable Sales Commission Expense 2. Cost of Goods Sold Retained Earnings Inventory 3. Accumulated Depreciation-Equipment Depreciation Expense 4. Construction in Process Debit Credit Deferred Tax Liability Retained Earnings

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