Lindy Company's auditor discovered two errors. No errors were corrected during 2020. The errors are described as follows: (1) Merchandise costing $3,800 was sold to a customer for $8,800 on December 31, 2020, but it was recorded as a sale on January 2, 2021. The merchandise was properly excluded from the 2020 ending inventory. Assume the periodic inventory system is used. (2) A machine with a five-year life was purchased on January 1, 2020. The machine cost $18,000 and has no expected salvage value. No depreciation was taken in 2020 or 2021. Assume the straight-line method for depreciation. Required: Prepare appropriate journal entries (assume the 2021 books have not been closed). Ignore income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is complete but not entirely correct. No 1 Transaction 1 General Journal Debit Credit Sales Retained earnings 00 8,800 8,800. 2 2 Depreciation expense Retained earnings Accumulated depreciation 100 3,600 3,800 7,400