Question

2019			(Adjustment a)
	Dec.	31	Uncollectible Accounts Expense		2,904.00
			Allowance for Doubtful Accounts					2,904.00
			To record estimated loss from Uncollectible accounts based on 0.4% of net credit sales, $726,000
			(Adjustment b)
		31	Supplies Expense		4,800.00
			Supplies					4,800.00
			To record supplies used during the year
			(Adjustment c)
		31	Insurance Expense		1,380.00
			Prepaid Insurance					1,380.00
			To record expired insurance on 1-year $5,520 policy purchased on Oct. 1
			(Adjustment d)
		31	Depreciation. Exp.—Store Equipment		14,400.00
			Accum. Depreciation—Store Equip.					14,400.00
			To record depreciation
			(Adjustment e)
		31	Salaries Expense—Office		2,900.00
			Salaries Payable					2,900.00
			To record accrued salaries for Dec. 29–31
			(Adjustment f)
		31	Payroll Taxes Expense		221.85
			Social Security Tax Payable					179.80
			Medicare Tax Payable					42.05
			To record accrued payroll taxes on accrued salaries: social security, 6.2% × 2,900 = $179.80; Medicare, 1.45% × 2,900 = $42.05
			(Adjustment g)
		31	Interest Expense		210.00
			Interest Payable					210.00
			To record accrued interest on a 4-month, 6% trade note payable dated Nov. 1: $21,000 × 0.06 × 2/12 = $210.00
			(Adjustment h)
		31	Interest Receivable		174.00
			Interest Income					174.00
			To record interest earned on 6-month, 8% note receivable dated Oct. 1: $8,700 × 0.08 × 3/12 = $174.00

Examine the above adjusting entries and determine which ones should be reversed. Show the reversing entries that should be recorded in the general journal as of January 1, 2020. (Record the entries in the order given. Round your answers to 2 decimal places.)

Answer 1

Reversing Entries:

Date	Account title and Explanation	Debit	Credit
Jan 1,2020	Salaries payable	$ 2,900.00
	Salaries expense-Office		$ 2,900.00
	[To record revering entry for salaries expense]
Jan 1,2020	Social Security Tax payable	$     179.80
	Medicare Tax payable	$        42.05
	Payroll taxes expense		$     221.85
	[To record revering entry for payroll taxes expense]
Jan 1,2020	Interest payable	$     210.00
	Interest expense		$     210.00
	[To record revering entry for interest expense]
Jan 1,2020	Interest income	$     174.00
	Interest receivable		$     174.00
	[To record revering entry for interest income]