1. Merchandising (25 pts) The RRR Hardware, owned and operated by RRReyes, showed the following adjusted trial balance on December 31, 2021, the end of its 3rd year of operations: Cash Accounts Receivable 130,115 98,750 Allow for Bad Debts 4,835 Notes Receivable 30,000 Mdse Inventory Jan 1, 2021 785,345 Prepaid Insurance 6,000 Office Supplies on Hand 3,750 Store Equipment 120,000 Accum Depr-Store Equipment 36,000 Office Equipment 60,000 Accum Depr-Office Equipment 18,000 Accounts Payable 371,535 Notes Payable 50,000 RRReyes Capital Jan 01, 2021 527,030 RRReyes Drawing 48,000 Sales 1,950,345 Sales Returns and Allo 4,020 Sales Discount 20,800 Purchases 1,320,500 Freight-In 30,875 Purchase Rets and Allo 2,585 Purchase Discount 20,000 Sales Salaries Expense 115,600 Advertising Expense 18,000 Freight-Out 12,260 Depre Expense - Store Equipment 12,000 Misc Selling Expense 17,650 Office Salaries 65,900 Rent Expense 48,000 Insurance Expense 9,000 Office Supplies Expense 8,650 Depre Expense - Office Equipment 6,000 Bad Debts Expense 2,515