Natt Spa 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 €1,500 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.