2) Analyze the errors that were made in recording the transactions. Indicate the immediate effect of the errors on the values of different financial statements. The errors could result in Overvalued (O) (higher), Undervalued (U) (lower), or No effect (N) (No change). DO NOT LEAVE ANY SQUARES BLANK! They will all have something in them. 4 marks each (Total 20 marks) Potential Error - Bolded items are the correct transaction Did not record additional funds invested by the owner The payment of an A/P was debited to Expense and credited to cash Recorded Cash Sale as $5225 instead of $2552 Purchased new equipment as a debit to Equipment Maintenance Expense as a credit to cash Forgot to record a customer paying down their A/R Total Revenue Total Expenses Net Income Total Assets Total Liabilities Total OE Reid Cleaners follows the accrual basis of accounting for revenue and expenses. The following Data were collected for Reid Cleaners for the month of November: - Payments received on previous A/R accounts, $2400 -Cash received for cleaning services performed this month, $6000 -Cleaning services performed on Account (A/R) $3000 -Payments made on previous A/P accounts. $3000 -Expenses of this month paid in cash, $4000 -Expenses incurred this month that remain unpaid at the end of the month, $3200