Andrew Clark Company discovered the following errors made in January 2020.

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 errors by reversing the incorrect entry and preparing the correct entry.

b. Correct the errors without reversing the incorrect entry.