13 marks (26 minutes) For each of the independent situation below, prepare the adjusting or correcting journal entry needed. Assume a December 31, 2020 year end. Situation 1: A three year business interuption insurance policy was purchased for $$4,680 on February 1, 2020. Insurance expense was debited for the entire purchase price. Prepare the adjusting entry required at December 31, 2020. (2 marks) - Situation 2: At December 31, 2019 ARC Company reported the following on its statement of financial position: Current assets: o Accounts Receivable $ 462,000 1 Less: Allowance for uncollectible accounts $ 30,000 2 Accounts Receivable, net $ 432,000 During 2020, credit sales were $1,750,000, cash collections from customers were $1,830,000 and $35,000 in accounts receivable were written off. It was determined that 10% of the ending accounts receivable balance is uncollectible. 3 Prepare the adjusting entry to record bad debt expense. Detail your calculations. (4 marks) 4