Exercise 2-20 Identifying effects of posting errors on the trial balance LO A1, P2 Posting errors are identified in the following table. In column (1), enter the amount of the difference between the two trial balance columns (debit and credit) due to the error. In column (2), identify the trial balance column (debit or credit) with the larger amount if they are not equal. In column (3), identify the account(s) affected by the error. In column (4), indicate the amount by which the account(s) in column (3) is under or overstated. Item (a) is completed as an example (Select "None" if there is no effect.) Description of Posting Error (1) Difference between Debit and Credit Columns (2) Column (3) with the identify Account(s) Larger Incorrectly Stated Total (4) Amount That Account(s) Over or Understated a $ 450 Credit Rent Expense Rent Expense is understated by $450 $2.720 debit to Rent Expense is posted as a $2 270 debit $5.440 credit to Cash is posted twice as two credits to Cash b $10.880 debit to the Withdrawals account is debited to Owner's Capital d $2.570 debit to Prepaid Insurance is posted as a debit to Insurance Expense Tota Columns a $ 450 Credit Rent Expense Rent Expense is understated by $450 $2,720 debit to Rent Expense is posted as a $2,270 debit $5,440 credit to Cash is posted twice as two credits to Cash b C $10,880 debit to the Withdrawals account is debited to Owner's Capital d $2,570 debit to Prepaid Insurance is posted as a debit to Insurance Expense $47.600 debit to Machinery is posted as a debit to Accounts Payable $6,340 credit to Services Revenue is posted as a $634 credit 9 $1760 debit to Store Supplies is not posted