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Noah Bahr Company discovered the following errors made in Jnuary 2017

1. A payment of Salaries and Wages Expense of $700 was debited to Equipment and credited to cash, both for $700 

2. A collection of $1.000 from a client on account was debited to cash $100 and credited to service  revenue $100

3. The Purchase of equipment on account for $760 was debited to Equipment $670 and credited to accounts payable $670 

Instructions:

A). Correct the erorrs by reserving the incorrect entry and Preparing the correct entry

B). Correct the errors without reserving the incorrect entry

A). On january 6, Brumbaugh co, sells Merchandise on Account to Pryor Inc. for $7,000, terms 2/10, n/30. On January 16, Pryor Inc. pays the amount due. Prepare the entries on Brumbaugh’s books to record the sale and related collection.

B). On January 10, Andrew Farley uses his Paltrow Co. credit card to purchase merchandise from Paltrow Co. for $9,000. On February 10, Farley is billed for the amount due of $9,000. On February 12, Farley pays $5,000 on the balance due. On March 10, Farley is billed for the amount due, including interest at 1% per month on the unpaid balance as of February 12. Prepare the entries on Paltrow Co.’s books related to the transactions that occurred on January 10, February 12, and March 10.