Question

Credit Debit 3,670.ee 3,670.00 5,669.88 5,680.80 1,620.ee 1,628.90 15,200.00 15,200.ee 2019 Adjustment a Dec.31 Uncollectible Accounts Expense Allowance for Doubtful Accounts To record estimated loss from Uncollectible accounts based on 8.5% of net credit sales, $734,890 (Adjustment b) 31 Supplies Expense Supplies To record supplies used during the year (Adjustment C) 31 Insurance Expense Prepaid Insurance To record expired insurance on 1-year $6,488 policy purchased on Oct. 1 (Adjustment d) 31 Depreciation. Exp. -Store Equipment Accum. Depreciation Store Equip. To record depreciation (Adjustment e) 31 Salaries Expense-Office Salaries Payable To record accrued salaries for Dec. 29-31 (Adjustment f) 31 Payroll Taxes Expense Social Security Tax Payable Medicare Tax Payable To record accrued payroll taxes on accrued salaries: social Security, 6.2% x 3,709 - $229.49; Medicare, 1.45% x 3,700 - $53.65 (Adjustment ) 31 Interest Expense Interest Payable To record accrued interest on a 4-month, 6% trade note payable dated Nov. 1: $29,880 x 0.06 X 2/12 - $290.ee (Adjustment h) 31 Interest Receivable Interest Income To record interest earned on 6-month, 8% note receivable dated Oct. 1: $9,300 K 9.18 X 3/12 - $233.00 3,700.00 3,700.20 283.05 229.40 52.65 290.00 223

Answer 1

Accrued expenses or income adjutment entries are to be reversed in the subsequent year Credits Reversing entries - Date Accounts Title & Explanation Debit S 01-Jan-20 Salaries Payable 3,700 To Salaries expense - Office (Entry for reversing salaries accrued in December 2019) 3,700 01-Jan-20 Interest Payable 290 To Interest expense (Entry for reversing interest accrued in December 2019) 290 233 01-Jan-20 Interest Income To Interest Receivable (Entry for reversing Interest income accrued in December 2019) 233