P7-3B The cash receipts journal below contains five entries. All five entries are for legitimate cash receipt transactions, but the journal contains some errors in recording the transactions. In fact, only one entry is correct, and each of the other four entries contains one error. Cash Receipts Journal Page 16 Debits Credits Other Accounts Cost of Goods Sales Accounts Sales Post. Sold Dr Date Cash Discounts Receivable Revenue Account Title Ref. Amount Inventory Cr May. 3 7,110 340 7,450 Alcon Labs Ltd. 9 3,460 3,460 Carl Ryther 10 110,000 1 10,000 Land 19 19 730 440 30 10,600 11,330 6,310 31 128,440 340 10,910 124,790 Totals 6,750 (11) (42) (12) (41) (51/13) Total Dr = $128,780 Total Cr = $135,700 Required 1. Identify the correct entry in the cash receipts journal above. 2. Identify the error in each of the other four entries. 3. Using the following format, prepare a corrected cash receipts journal. All column totals are correct in the cash receipts journal that follows. Cash Receipts Journal Page 16 Debits Credits Other Accounts Cost of Goods Sales Accounts Sales Post. Sold Dr Date Cash Discounts Receivable Revenue Account Title Ref. Amount Inventory Cr May. 3 Alcon Labs Ltd. Carl Ryther 10 Land 19 19 30 31 131,900 340 10,910 11,330 Totals 110,000 6,750 (11) (42) (12) (41) (51/13) Total Dr = $132,240 Total Cr = $132,240 3 Correcting errors in the cash receipts journal (perpetual inventory system)