Resolving Errors and Correcting a Trial Balance Assume we examine the accounts of Century Inc. and identify the following four errors. 1. Equipment purchased for $7,500 at year-end was debited to Expenses. 2. Sales on credit of $829 were debited to Accounts Receivable for $892 and credited to Revenues for $829. 3. A $6,000 cash collection on accounts receivable was debited to Cash and credited to Revenues. 4. The inventory amount is understated by $2,000 because the entry to record the purchase of inventory was incorrectly recorded in cost of goods sold (cost of goods sold is included in Expenses). The unadjusted trial balance of Century Inc. is provided below. Prepare a corrected unadjusted trial balance. Hint: Correct all improper postings of debits and credits in your solution. Note: Do not use negative sign in your answers. Unadjusted Trial Balance Corrected Unadjusted Trial Balance Accounts Debit Credit Debit Credit Cash $35,563 $ $ 35563 $ 0 Accounts receivable 31,000 0 0 Allowance for doubtful accounts (2,000) 0 2000 Inventory 18,000 20000 0 Equipment 181,500 189000 0 Accumulated depreciation 12,000 0 12000 Accounts payable 18,000 0 18000 Notes payable 25,000 0 25000 Common stock Retained earnings Revenues Expenses Net earnings 180,000 0 180000 14,000 0 14000 75,000 0 69000 60,000 50500 0 $324,063 $324,000 $ 295063 $ 320,000