Exercise 22B-16 You have been engaged to review the financial statements of Teal Corporation. In the course of your examination, you conclude thot the bockkeeper hired during the current year is not doing a good job. You notice a number of irregularities as follows 1. Year-end wages payable of $3,540 were not recorded because the bookkeeper though, that-they were immaterial." 2. Accrued vacetion pey for the year of $28,800 was not recorded because the bookkeeper "never heard that you hed to do it. 3. Insurance for a 12-month period purchased on November 1 of this year was charged to insurance expense in the amount of $2,700 becouse the amount of the check is about the same every year. 4 Reported sales evenue or the year is s 1,927,080. This indudes all sales taxes collected orthe year. The sales tax rate is 6% Because the sales tax is orwarded to the state's Dep rtment of Revenue the Sales Tax Expcnse account is debited Te boo kceper thought that "the sales tax is a selling expense."At the end of the cunrent year, the balance in the Sales Tax Expense account is $93,780 Prepare the necessary correcting entries, assuming that Teal uses a calendar-year basis. The books for the current year have not been closed. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account tities and enter 0 for the amounts.) No. Account Titles and Explanation Dcbit Credit 2. 3. 4. To record the als taxes due.) To correct pricr entry