The accountant for Fine Lines & More was hospitalized yesterday. The Senior Operations Manager (SOM) called you to assist him with the accounts. He advised you that the trial balance for April 2024 had a difference of $20,000 on the DR column, which was posted to the Suspense Account. The Net Profit at that point was $48,200. The SOM said he had ordered an investigation of the errors and he provided you with the following errors his team had identified so far:
a. Prepaid insurance $5,700 was included in Other Expenses.
b. Payment of $3,300 made to D. O. Nut was posted in error to Don Nutthal account.
c. Cash drawings of $1,200 was posted as $2,100 to the correct accounts in the general ledger.
d. Credit sales to P. Wiggan for $8,500 was credited in Accounts Receivable and debited to Sales in error.
e. Incorrect postings to the general ledger were:
i. Carriage Inwards overstated by $1,000,
ii. Rent Received was also overstated by $700, and
iii. Bad Debt was understated by $300.
f. Payment of $8,000 to a creditor was credited twice in the bank account but was not posted to Accounts Payable.
g. Motor vehicle expenses of $2,650 paid by cheque was only posted to the Bank account in the general ledger.
h. Discount Received was incorrectly transferred to the trial balance. It should be $880 but $80 was transferred instead.
i. Opening Inventory was overstated by $1,500.
j. Return Outwards of $2,150 was posted as a credit to the Return Inwards account and debited to Accounts Payable.
REQUIRED:
Prepare the journal entries to correct these errors with narratives describing the type of error being corrected.