In reviewing the boks of Unger Retailers Inc., the auditor discovered certain errors that had occurred during 2013 and 2014. No errors were corrected during 2013. The errors are summarized below:

(a) Beginning merchandise inventory (January 1, 2013) was understated by $8,640

(b) Merchandise costing $2,400 was sold for $4,000 to B.J. Taylor on December 29, 2013, but the sale was recorded in 2014. The merchandise was shipped F.O.B. shipping point and was not included in ending inventory. Unger uses a periodic inventory system.

(c) A two-year fire insurance policy was purchased on May 1, 2013, for $5,760. The entire amount was debited to Prepaid Insurance. No adjusting entry was made in 2013 or 2014.

(d) A one-year note receivable of $9,600 was held by Unger beginning October 1, 2013. Payment of the 10 percent note and accrued interest was received upon maturity. No adjusting entry was made on December 31, 2013.

(e) Equipment with a ten-year life was purchased on January 1, 2013, for $39,200. No depreciation expense was recorded during 2013 or 2014. Assume that the equipment has no salvage value and that Unger uses the straight-line method for recording depreciation.

Prepare journal entries to correct each of these independent situations. Assume the nominal accounts for 2014 have not yet been closed into the income summary account.