Reported net income was 27000 in 2009 and 35000 in 2010 the

Question

At the beginning of 2011, Tanham Company discovered the following errors made in the preceding two years:

 

Reported net income was $27,000 in 2009 and $35,000 in 2010. The allowance for doubtful accounts had a zero balance at the beginning of 2009. No accounts were written off during 2009 or 2010. Ignore income taxes.

Required:
1. What is the correct net income for 2009 and 2010?

2. Prepare the adjusting journal entry in 2011 to correct theerrors.