Resolving Errors and Correcting a Trial Balance The following trial balance provided by Specialty Stores. Inc. is not in balance. Account Debit Credit Cash 5204,500 5 Accounts receivable 160.250 Allowance for doubtful accounts 3.750 nventory 222.000 Prepaid insurance 2,000 land 25.000 (quipment 500.000 Accumulated depreciation 150.000 Account payable 91.250 Interest payable 1.250 Deferred revenue 4500 Notes payable 250,000 Common Stock 350,000 Retained earnings 20.000 Sales 680.250 Salaries expense 200.000 Operating expense 276.250 Interest expense 6.000 Total 31.600,500 51.59.500 Upon a detailed examination of the accounting records, the following items were discovered, 1. A$3,000 posting (debit) to inventory was omitted, 2. A $1.250 payment on account was debited to Operating Expense and credited to Cash 3. A sale of $8,000 on account supported by an invoice) was recorded as a debit to Accounts Receivable for $5,750 and a credit to Sales for $5.750 4. The total amount of interest expense in the ledger is $10,000, instead of $6,000 incorrectly included in the trial balance 5. Depreciation expense for the period of 550,000 was debited to Accumulated Depreciation and credited to operating Expense