How would I classify the given items on an income statement?
1) The cfo determined that in 2009 johnson's accountant incorrectly recorded rent revenue worth 25,000. The rent was paid five years in advance in 2009. The error was not discovered until december 2011. (current year rent was properly recorded.)
2) The cfo change the inventory valuation from lifo to fifo this year. Lifo inventory results should be $50,000 and under fifo method it is $30,000.
3) During 2011, johnson swim gear wrote off $15,000 of receivables that were over five years old.