Statement of retained earnings for the current year

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Last year, Owens, Inc., reported bad debt expense of $150,000. During the current year, Owens discovered that its bad debt expense for last year should have been $175,000. Owens retained earnings had a balance of $250,000 at the beginning of the current year. Owens is subject to a 30% income tax rate. Show how Owens, Inc., would report the correction of its error on its statement of retained earnings for the current year.

Reference no: EM13874430

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