One of your company's business checks clears the bank at its correct amount of P5,000. The transaction that underlies this check was the cash purchase of an office typewriter. The entry was recorded as a debit to Insurance Expense for P500 and a credit to Cash for P500. The correcting entry should be: DR: Equipment, P4,500; CR: Cash, P4,500 DR: Accounts Receivable, P4,500; CR: Cash, P4,500 DR: Equipment, P5,000; CR: Cash, P4,500 and Insurance Expense, P500 DR: Cash, P5,000; CR: Insurance Expense, P5,000