2) Complete T-Accounts. Proper entries and proper formatting will both be marked.

a) Prepare T-Accounts only for the following entries. (2 Marks)

Bad Debt Expense 500

ADA 500

COGS 400

Inventory 400

b) Prepare T-Accounts to reflect the entries used to close any of the above balances in the accounts in part a) as required, include the creation of the required interim account used to close out accounts, and the subsequent closing of that account. (2 Marks)