Question

				Debit			Credit
2019			(Adjustment a)
	Dec.	31	Uncollectible Accounts Expense		3,640.00
			Allowance for Doubtful Accounts					3,640.00
			To record estimated loss from Uncollectible accounts based on 0.5% of net credit sales, $728,000
			(Adjustment b)
		31	Supplies Expense		5,000.00
			Supplies					5,000.00
			To record supplies used during the year
			(Adjustment c)
		31	Insurance Expense		1,440.00
			Prepaid Insurance					1,440.00
			To record expired insurance on 1-year $5,760 policy purchased on Oct. 1
			(Adjustment d)
		31	Depreciation. Exp.—Store Equipment		14,600.00
			Accum. Depreciation—Store Equip.					14,600.00
			To record depreciation
			(Adjustment e)
		31	Salaries Expense—Office		3,100.00
			Salaries Payable					3,100.00
			To record accrued salaries for Dec. 29–31
			(Adjustment f)
		31	Payroll Taxes Expense		237.15
			Social Security Tax Payable					192.20
			Medicare Tax Payable					44.95
			To record accrued payroll taxes on accrued salaries: social security, 6.2% × 3,100 = $192.20; Medicare, 1.45% × 3,100 = $44.95
			(Adjustment g)
		31	Interest Expense		230.00
			Interest Payable					230.00
			To record accrued interest on a 4-month, 6% trade note payable dated Nov. 1: $23,000 × 0.06 × 2/12 = $230.00
			(Adjustment h)
		31	Interest Receivable		220.00
			Interest Income					220.00
			To record interest earned on 6-month, 8% note receivable dated Oct. 1: $8,800 × 0.10 × 3/12 = $220.00

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