27.10A The trial balance of Happy Bookkeeper Ltd, as produced by its bookkeeper, includes the following items: Sales ledger control account Purchases ledger control account Suspense account (debit balance) 110,172 78,266 2,315 You have been given the following information: (1) The sales ledger debit balances total 111,111 and the credit balances total 1,234. (ii) The purchases ledger credit balances total 77,777 and the debit balances total 1,111. (iii) The sales ledger includes a debit balance of 700 for business X, and the purchases ledger includes a credit balance of 800 relating to the same business X. Only the net amount will eventually be paid. (iv) Included in the credit balance on the sales ledger is a balance of 600 in the name of H. Smith. This arose because a sales invoice for 600 had earlier been posted in error from the sales day book to the debit of the account of M. Smith in the purchases ledger. (v) An allowance of 300 against some damaged goods had been omitted from the appropriate account in the sales ledger. This allowance had been included in the control account. (vi) An invoice for 456 had been entered in the purchases day book as 654. (vii) A cash receipt from a credit customer for 345 had been entered in the cash book as 245. (viii) The purchases day book had been overcast by 1,000. (ix) The bank balance of 1,200 had been included in the trial balance, in error, as an overdraft. (x) The bookkeeper had been instructed to write off 500 from customer Y's account as a bad debt, and to reduce the provision for doubtful debts by 700. By mistake, however, he had written off 700 from customer Y's account and increased the allowance for doubtful debts by 500. (xi) The debit balance on the insurance account in the nominal ledger of 3,456 had been included in the trial balance as 3,546. Required: Record corrections in the control and suspense accounts. Attempt to reconcile the sales ledger control account with the sales ledger balances, and the purchases ledger control account with the purchases ledger balances. What further action do you recommend?