Blossom Co, purchased a machine on January 1, 2018, for $539,000. At that time, it was estimated that the machine would have a 10- year life and no salvage value. On December 31, 2021, the firm's accountant found that the entry for depreciation expense had been omitted in 2019. In addition, management has informed the accountant that the company plans to switch to straight line depreciation, starting with the year 2021. At present, the company uses the sum of the years -digits method for depreciating equipment. Prepare the general journal entries that should be made at December 31, 2021, to record these events. (Ignore tax effects) (Credit account titles are automatically Indented when amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation Date Dec. 31, 2021 Debit Credit

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The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

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In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.