The following errors in the accounting records of the Willis & Glassett Partnership were discovered on January 10, 2008.

The partners share net income and losses as follows: 60%, Willis; 40%, Glassett.
1. Prepare a correcting journal entry on January 10, 2008, assuming that the books were closed for 2007.
2. Prepare a correcting journal entry on January 10, 2008, assuming that the books are still open for 2007 and that the partnership uses the perpetual inventorysystem.

Ending Inventories Depreciation Revenue Not Expense Not Accrued Rent Accrued Interest Year of Error Overstated Understated Recorded Recorded 2005 2006.. 2007 7.000 21,000 $30,000 $12,000 19,000 $3,000