THE FOLLOWING ERRORS WERE DISCOVERED IN THE YEAR OF ERROR BEFORE THE BOOKS WERE CLOSED. REVIEW THE FACTS AND ANSWER THE QUESTIONS RELATED TO EACH FACT PATTERN. Error \#1 In 20X2 Motown paid off an Accounts Payable balance and inadvertently credited Accounts Receivable. The entry was recorded incorrectly as follow: Cash paid to satisfy Accounts Payable Error discovered in 20X2 before the books are closed. IGNORE INCOME TAXES. Original entry was as follows in 202 : Accounts Payable $58,000 Accounts Receivable $58,000 12.) The 20X2 required correcting journal entry has what NET impact on the asset section of the balance sheet. Do not consider liabilities or equity, just the asset section. A. Increase B. Decrease C. No impact Error \#2 In 20X2 Rock Corp inadvertently recorded a decrease to the Allowance for Bad Debts as an increase to the Allowance for Bad Debts. Required decrease to Allowance for Bad Debts Error discovered in 20X2 before the books are closed. IGNORE INCOME TAXES. Original entry was as follows in 202 : Bad Debt Expense $62,120 Allowance for Bad Debts $62,120 Error \#3 In 20X2 Motown consumed some of their prepaid supplies and inadvertently credited Cash. The entry was recorded incorrectly as follow: Original entry was as follows in 202 : Supplies Expense $74,000 Cash $74,000