Problem

Examine the following adjusting entries and determine which ones should be reversed. Show...

Examine the following 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, 2014. Include appropriate descriptions.

2013	(Adjustment a)
Dec. 31	Uncollectible Accounts Expense	3,625.00
	Allowance for Doubtful Accounts		3,625.00
	To record estimated loss from uncollectible accounts based on 0.5% of net credit sales, $725,000
	(Adjustment b)
Dec. 31	Supplies Expense	4,700.00
	Supplies		4,700.00
	To record supplies used during the year
	(Adjustment c)
31	Insurance Expense	1,350.00
	Prepaid Insurance		1,350.00
	To record expired insurance on 1-year
	$5,400 policy purchased on Oct. 1
	(Adjustment d)
31	Depreciation. Exp.—Store Equipment	14,300.00
	Accum. Depreciation—Store Equip.		14,300.00
	To record depreciation
	(Adjustment e)
31	Salaries Expense—Office	2,800.00
	Salaries Payable		2,800.00
	To record accrued salaries for Dec. 29–31
	(Adjustment f)
31	Payroll Tax Expense	214.20
	Social Security Tax Payable		173.60
	Medicare Tax Payable		40.60
	To record accrued payroll taxes on accrued salaries: social security, 6.2% ×2,800 = $173.60; Medicare, 1.45% ×2,800 = $40.60
	(Adjustment g)
31	Interest Expense	200.00
	Interest Payable		200.00
	To record accrued interest on a 4-month, 6% trade note payable dated Nov. 1: $20,000 ×0.06 × = $200
	(Adjustment h)
31	Interest Receivable	215.00
	Interest Income		215.00
	To record interest earned on 6-month, 10% note receivable dated Oct. 1: $8,600 ×0.10 × = $215