.3) Recording adjustments and completing the worksheet. Whatnots is a retail seller of cards, novelty items, and business products. On December 31, 2016. the firm's general ledger contained the following accounts and balances. INSTRUCTIONS 1. Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 2016. 2. Enter the adjustments in the Adjustments section of the worksheet. Identify each adjustment with the appropriate letter. 3. Complete the worksheet. ACCOUNTS AND BALANCES Cash S 3,235 Dr. Accounts Receivable 6,910 Dr. Allowance for Doubtful Accounts 600 Cr. Merchandise Inventory Inom 16,985 Dr. Supplies 750 Dr. Prepaid Insurance 2,400 Dr. Store Equipment 6,000 Dr. Accumulated Depreciation --- Store Equip. 2,000 Cr. Store Fixtures 15,760 Dr. Accumulated Depreciation --Store Fixtures 4,100 C Notes Payable 4,000 Cr. Accounts Payable 600 Cr. Interest Payable Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable 39,780 Cr. 8,000 Dr. 236,560 Cr. 6,000 Dr. 160,000 Dr. 2,000 Cr. Preston Allen, Capital Preston Allen, Drawing Sales Sales Returns and Allowances Purchases Purchases Returns and Allowances Income Summary Rent Expense Telephone Expense Salaries Expense Payroll Tax Expense Supplies Expense Insurance Expense Depreciation Expense ---Store Equipment Depreciation Expense --Store Fixtures Uncollectible Accounts Expense Interest Expense 18,000 Dr. 2,400 Dr. 40,000 Dr. 3,200 Dr. ADJUSTMENTS 2.-6. Merchandise inventory on hand on December 31, 2016, is $15.840. c. During 2016, the firm had nei credit sales of $160,000. Past experience indicates that 0.8 percent of these sales should result in uncollectible accounts. d. On December 31, 2016, an inventory of supplies showed that items costing $245 were on han e. On July 1, 2016, the firm purchased a one-year insurance policy for $2.400. f. On January 2, 2014, the firm purchased store equipment for S6,000. The equipment was estimated to have a five-year useful life and a salvage value of $1.000. g. On January 4, 2014. the firm purchased store fixtures for $15.760. At the time of the purchas the fixtures were assumed to have a useful life of seven years and a salvage value of $1.410. h. On October 1, 2016, the firm issued a six-month. $4.000 note payable at 9 percent interest w a local bank i. At year-end (December 31, 2016), the firm owed salaries of $1.450 that will not be paid unti January 2017