Question: Lindy Company's auditor discovered two errors. No errors were corrected during 2020. The errors are described as follows: 1) Merchandise costing $3,400 was sold to

Lindy Company's auditor discovered two errors. No errors were corrected during 2020. The errors are described as follows: 1) Merchandise costing $3,400 was sold to a customer for $8,400 on December 31, 2020, but it was recorded as a sale on January 2, 2021. The merchandise was properly excluded from the 2020 ending inventory Assume the periodic inventory system is used. 2) A machine with a five-year life was purchased on January 1, 2020 The machine cost $14,000 and has no expected salvage value. No depreciation was taken in 2020 or 2021. Assume the straight-line method for depreciation. Prepare appropriate journal entries (assume the 2021 books have not been closed).

Do not copy from Chegg and give a complete answer with an explanation.

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