Question: Cherokee Company's auditor discovered some errors. No errors were corrected during 2020. The errors are described as follows: (1) Beginning inventory on January 1, 2020,

Cherokee Company's auditor discovered some errors. No errors were corrected during 2020. The errors are described as follows: (1) Beginning inventory on January 1, 2020, was understated by $5,000. (2) A two-year insurance policy purchased on April 30, 2020, in the amount of $20,400 was debited to Prepaid Insurance. No adjustment was made on December 31, 2020, or on December 31, 2021. Required: Prepare appropriate journal entries (assume the 2021 books have not been closed). Ignore income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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