Blair Natt Company discovered the following errors made in January 2022.

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 $1,500 from a client on account was debited to Cash $150 and credited to Service Revenue $150.
3. The purchase of equipment on account for $670 was debited to Equipment $760 and credited to Accounts Payable $760.

Instructions.
a. Correct the errors by reversing the incorrect entry and preparing the correct entry.
b. Correct the errors without reversing the incorrect entry.