The accountant for House of Hardware, Ricky Hammer, was unable to complete the trial balance of the business’s general ledger. The total of the credit column was less than the total of the debit column by $1760. In addition, the balance of the Accounts Receivable Control account in the general ledger was greater than the total of the schedule of accounts receivable by $1280, and the schedule of accounts payable was more than the credit balance of the Accounts Payable Control account by $520.

Ricky’s analysis identified the following errors:

1. A purchase invoice for $540 was recorded in the purchases journal as $450. The purchase was duly posted to the ledgers.

2. There was an error of addition in the debit column in the trial balance, which resulted in the total of the debits being $250 more than it should be.

3. An error of addition had occurred in the sales journal that resulted in the total of the sales journal being recorded and posted as $32 765 instead of the correct figure of $32 675.

4. An allowance of $425 on a sale to a customer was correctly recorded in the general journal and correctly posted to the general ledger. However, the amount was posted to the debit side of the customer’s account in the accounts receivable ledger, instead of being credited.

5. Interest revenue of $860 had been correctly recorded in the cash receipts journal, but had been posted as $680 to the debit of the Interest Expense account.

6. A major supplier, Richard Manning, had also bought goods to the value of $520 during the last week of the financial year. A general journal entry to off-set the $520 against the amount owing by Manning was recorded in the general journal and correctly posted to the general ledger subsidiary ledger control accounts. However, the set-off was not recorded in the subsidiary ledgers.

Required

A. Ricky believes that after the above are taken into account, the trial balance will balance. Show your calculations to verify that he is correct.

B. Which of errors 1–6 need to be corrected for the reconciliation of the schedules of accounts receivable and accounts payable to their respective control accounts? Explain, showing calculations, how the adjustments for the errors will achieve reconciliation.