Choi Company has an inexperienced accountant. During the first two weeks on the job, the accountant made the following errors in journalizing transactions. All incorrect entries were posted.
1. A payment on account of $1,750 to a creditor was debited $750 to Accounts Payable and credited $750 to Cash.
2. The purchase of supplies on account for $860 was not recorded.
3. A $400 withdrawal of cash for L. Choi's personal use was debited $400 to Salaries Expense and credited $400 to Cash.
4. Received $700 cash from a customer on account. Cash was debited $700 and Service Revenue was credited $700.
5. A customer was billed $350 for services provided. Accounts Receivable was debited $350 and Unearned Revenue was credited $350.
Instructions
(a) Prepare the correcting entries.
(b) Indicate the impact of each error on the balance sheet and income statement by stating whether total assets, liabilities, owner's equity, revenues, expenses, and profit are understated (U), overstated (O), or if there is no effect (NE). Use the following format, in which the answer for the first error is given as an example:

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Balance Sheet Income Statement Error Assets Liabilities Owners Equity Revenues Expenses Profit NE NE NE NE