4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete Part 6.

a.	Merchandise inventory on May 31			$585,200
b.	Insurance expired during the year			12,000
c.	Store supplies on hand on May 31			4,000
d.	Depreciation for the current year			14,000
e.	Accrued salaries on May 31:
	Sales salaries	$7,000
	Office salaries	6,600	13,600
f.	The adjustment for customer refunds and allowances is $60,000.

6. Journalize the adjusting entries. If an amount box does not require an entry, leave it blank. Post the adjusting entries to the attached spreadsheet you used in parts 1 and 2.

				Page 22
Date	Description	Post. Ref.	Debit	Credit
	Adjusting Entries
20Y7
May 31	Accounts ReceivableCashCost of Merchandise SoldInterest ExpenseMerchandise Inventory
	CashCost of Merchandise SoldInterest ExpenseMerchandise InventorySales
May 31	Accounts PayableCashInterest ExpenseInsurance ExpensePrepaid Insurance
	Accounts PayableCashInterest ExpenseInsurance ExpensePrepaid Insurance
May 31	Accounts PayableCashCost of Merchandise SoldStore SuppliesStore Supplies Expense
	Accounts PayableCashMerchandise InventryStore SuppliesStore Supplies Expense
May 31	Accounts PayableAccumulated Depreciation-Store EquipmentCashDepreciation ExpenseStore Equipment
	Accounts PayableAccumulated Depreciation-Store EquipmentCashDepreciation ExpenseStore Equipment
May 31	Accounts PayableCashInterest ExpenseSales Salaries ExpenseSalaries Payable
	CashAccounts PayableInterest ExpenseOffice Salaries ExpenseSalaries Payable
	CashInterest ExpenseOffice Salaries ExpenseSales Salaries ExpenseSalaries Payable
May 31	Accounts PayableAccumulated Depreciation-Store EquipmentCashSalesService Revenue
	Accounts PayableAccumulated Depreciation-Store EquipmentCustomer Refunds PayableCustomer Refunds ReceivableCash