Correction of errors

At the year end of T Down & Co, an imbalance in the trial balance was revealed which resulted in the
creation of a suspense account with a credit balance of $1,040.
Investigations revealed the following errors.
(i) A sale of goods on credit for $1,000 had been omitted from the sales account.
(ii) Delivery and installation costs of $240 on a new item of plant had been recorded in cost of sales.
(iii) Cash discount of $150 on paying a supplier, JW, had been taken, even though the payment was
made outside the time limit.
(iv) No adjustment had been made for closing inventory of $240.
(v) A purchase of raw materials of $350 had been recorded in the purchases account as $850.
(vi) The purchase returns day book included a sales credit note for $230 which had been entered
correctly in the account of the customer concerned, but included with purchase returns in the
nominal ledger.
Note: Cash/settlement discounts received are deducted from cost of sales.
Required
(a) Prepare journal entries to correct each of the above errors. Narratives are not required.
(b) Open a suspense account and show the corrections to be made.
(c) Prior to the discovery of the errors, T Down & Co’s gross profit was calculated at $35,750 and the
profit for the year at $18,500.
Calculate the revised gross profit and profit for the year figures after the correction of the errors.

Hello Tutor,

I have some questions related to the solutions from text book:

(i) For this I adjusted for both sides of the booking, but textbook is differrent:
Text book solution:
DEBIT Suspense a/c 1,000
CREDIT Sales 1,000

My solution:
DR AR 1000
CR sales 1000

(iv) For this I think that closing inventory is not adjusted, we need to record it and the journal entry is DR inventory CR Statement of profit and loss. But I have no clue why the solution is as follows:
Text book solution:
DEBIT Inventory of stationery 240
CREDIT Stationery expense 240

My solution:
DR inventory 240
CR suspense account 240

(v) For this I thought that we need to adjust the purchases account and trade payables account.
Text book solution:
DEBIT Suspense a/c 500
CREDIT Purchases 500

My solution:
DR AP 500
CR purchases 500

(c) For the recalculation of gross profit and net profit, I adjusted the closing inventory for gross profit, as I remember that closing inventory is part of COGS, and therefore I add it on the originally report gross profit. But the solution from text book is to adjust that for the profit for the year reported, which I do not really understand the reason.

Text book solution:
Gross profit originally reported 35,750
Sales omitted 1,000
Plant costs wrongly allocated 240
Incorrect recording of purchases 500
Cash discount incorrectly taken (150)
Sales credit note wrongly allocated (460)
Adjusted gross profit 36,880

Profit for the year originally reported 18,500
Adjustments to gross profit $(36,880 – 35,750) 1,130
Closing inventory 240
Adjusted profit for the year 19,870
Note. It has been assumed that the delivery and installation costs on plant have been included in purchases

My solution:

Gross profit originally reported 35,750
Sales omitted 1,000
Plant costs wrongly allocated 240
Closing inventory 240
Incorrect recording of purchases 500
Cash discount incorrectly taken (150)
Sales credit note wrongly allocated (460)
Adjusted gross profit 37120

Profit for the year originally reported 18,500
Adjustments to gross profit $(37120 – 35,750) 1370
Adjusted profit for the year 19,870

I hope to receive your enlightenment.

Thank you tutor!