123 The accountant of Kaplan Ltd has not recorded yet the journal entries for the month of June 2020 and the adjusting entries at the end of the month. The end of the financial year for Kaplan Ltd is 30 June. Balances of the accounts as at 31 May 2020 are as follows: $ $ Cash 22,000 4,000 Depreciation of property plant and equipment Accounts Receivable 26,000 Allowance for doubtful debts 380 Inventory 18,000 Accounts payable 6,400 Prepaid insurance 1,200 Accrued expenses 2,800 Property plant and equipment 40,000 Share capital 16,000 Cost of goods sold 28,000 Retained earnings 27,620 Operating expenses 16,000 Revenue 58,000 The following transactions were identified for the month of June: 1 Jun: Deposit $3,000 in short-term financial investment. 4 Jun: Revenue from credit sales $8,000. Cost of goods sold $6,400. 5 Jun: Purchases office supplies $2,000 cash (recorded as an expense for the full amount). 6 Jun: Cash collected from customers $6,000. 30 Jun: The company received $2,400 for services that will be provided in July 2020. a. Additional information at the end of June 2020: An insurance policy was taken for an annual premium of $1,200 on 31 March 2020 for the next 12 months. It was fully paid on 31 March. b. At the end of June, it is estimated that 4% of Kaplan's accounts receivable will be uncollectable. The company uses the allowance method to record bad debts expense. c. At the end of June, a physical count of office supplies revealed $600 still on hand. d. Interest in short-term investment held amounting to $225 is due but has not yet received