Question 1 of 1 16 Points Enter your answers to the following questions in the space provide below. Please note that typing errors may result in loss of marks. Swaggy Steve's Clothing Company just completed their fiscal year ending August 31, 2019. The company's controller, when reviewing the trial balance, has discovered that the following four errors were made: 1. Swaggy recorded a $400 purchase of supplies on account by debiting Accounts Payable and crediting Supplies 2. A cash receipt of $2,200 received from a customer as payment on their account was debited to cash and credited to sales revenue. 3. Swaggy recorded the payment of $872 in salaries expense as $827 (the correct accounts were debited and credited). 4. A payment of $2,400 for October's rent was debited to rent expense. Required: A. Using the space provided below, indicate how each element of the basic accounting equation is affected by the error by writing the amount and whether it is overstated (higher than what it is supposed to be) or understated (lower than what it is supposed to be), e.g., if the error caused assets to be overstated by $100 write "$100 Overstated" under Assets Enter "NE" if there is no effect on the element. ASSETS = LIABILITIES + SHAREHOLDERS' EQUITY Error 1 Understated 400 Understated 400 NE Error 2 Overstated 2200 Error 3 Error 4 B. Prepare the correct journal entries that should have been recorded by the company for each of the four transactions listed in the question. Omit the explanations. Record your answers in the space provided below: Reference Account Debit Credit Error 1 Error 2 Error 3 Error 4