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 Post. Ref. Cost of Goods Sold Dr Inventory Cr Date Amount Cash 7,110 May. 3 9 Sales Accounts Sales Discounts Receivable Revenue Account Title 340 7,450 Alcon Labs Ltd. 3,460 3,460 Carl Ryther 110,000 Land 10 19 19 440 110,000 730 10,600 128,440 30 31 340 10,910 11,330 124,790 Totals (41) 6,310 6,750 (51/13) (11) (42) (12) 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 Discounts Receivable Revenue Account Title Inventory Cr May. 3 Alcon Labs Ltd. Carl Ryther Date Cash Ref. Amount 9 10 Land 19 19 30 31 340 Totals 110,000 131,900 (11) 10,910 (12) 11,330 (41) 6,750 (51/13) (42) Total Dr = $132,240 Total Cr = $132,240 3 Correcting errors in the cash receipts journal (perpetual inventory system)