Prepare adjusting journal entries for the following. (Credit account titles are
ID: 2336194 • Letter: P
Question
Prepare adjusting journal entries for the following. (Credit account titles are automatical the account titles and enter O for the amounts.) 1. Bad debt expense is estimated to be $1,471. 2. Equipment is depreciated based on a 7-year life (no salvage value). 3. Insurance expired during the year $2,557. 4. Interest accrued on notes payable $3,492. 5. Sales salaries and wages earned but not paid $2,232. 6. Advertising paid in advance $722 7. Office supplies on hand $1,510, charged to Supplies Expense when purchased. No. Account Titles and Explanation Debit Credit 1. Bad Debt Expense 1471 Allowance for Doubtful Accounts 1471 2. 0 2557 3. Prepaid InsuranceExplanation / Answer
Solution:
Preparing the Adjusting Journal Entries for the Following:
Event General Journal Debit Credit 1 Bad Debt Expense $1,471 Allowance for Doubtful Accounts $1,471 2 Depreciation Expense - Furniture and Equipment Accumulated Depreciation - Furniture and Equipment 3 Insurance Expense $2,557 Prepaid Insurance $2,557 4 Interest Expense $3,492 Interest Payable $3,492 5 Sales Salaries Expense $2,232 Salaries Payable $2,232 6 Prepaid Advertising Expense $722 Advertising Expense $722 7 Office Supplies $1,510 Office Expense $1,510