Give the journal entry to record each of the transactions below as well as any necessary adjusting entries on December 31, 1979, assuming that the accounting period is the calendar year and the books are closed on December 31.

a Morrissey's Department Store had sales of \(\$ 400,000\) during 1979. Of this total, \(\$ 250,000\) were for cash and \(\$ 150,000\) were on account. Accounts totaling \(\$ 120,000\) were collected. Past experience indicates that 2 percent of sales on account will probably become uncollectible. Specific accounts totaling \(\$ 2,500\) were determined to be uncollectible during the year.

b Harrison's Supply Company received a 90-day note from a customer on December 1, 1979. The note in the face amount of \(\$ 2,000\) replaced an open account receivable of the same amount. The note is due with interest at 8 percent per year on March 1, 1980 .

c Thompson's Wholesale Company purchased a 3-year insurance policy on September 1, 1979 , paying the 3 -year premium of \(\$ 10,800\) in advance.

d William's Products Company acquired a machine on July 1, 1979, for \(\$ 10,000\) cash. The machine is expected to have a \(\$ 2,000\) salvage value and a 4 -year life.

e Greer Electronics Company acquired an automobile on September 1, 1978, for \(\$ 6,000\) cash. The automobile is expected to have \(\$ 1,200\) salvage value and a 4 -year life.

f Devine Company rented out excess office space for the 3 -month period beginning December 15, 1979. The first month's rent of \(\$ 7,200\) was received on this date.

g Prentice Products Corporation began business on November 1, 1979. It acquired office supplies costing \(\$ 6,000\) on account. Of this amount, \(\$ 5,000\) was paid by year-end. A physical inventory indicates that office supplies costing \(\$ 2,500\) were on hand on December 31,1979 .