Assume found the following errors: 

✓ Equipment purchased for P 7,500 at year-end was debited to Expenses. 

✓ Sales on credit of P 829 were debited to Accounts Receivable for P 892 and credited to Revenues for P 829. 

✓ A P 8,000 collection on accounts receivable was debited Cash and credited to Revenues. 

✓ The inventory amount is understated by P 2,500 (cost of goods sold is included in expenses). 

 

Requirement:

1. Prepare correcting entries.