At the beginning of 2020, internal auditors discovered that…
At the beginning of 2020, internal auditors discovered that Sarlacc, Inc. had debited an expense account for the $700,000 cost of a machine purchased on January 1, 2017. The machine’s useful life was expected to be 5 years with no residual value. Straight-line depreciation is used by Sarlacc. The journal entry to correct the error will include a credit to accumulated depreciation of: