7.2 The following trial balance was extracted from the books of Sandy Restaurant at the close of business on 28 February 2017. Trial Balance as at 28 February 2017 Dr. Cr. $ $ Purchases and sales 11,280 19,740 Rent 1,020 Wages and salaries 2,580 Discounts allowed and received 690 360 Van running costs 450 Accounts receivable 5,730 Provision for doubtful debts (1 March 2016) 270 Accounts payable 2,490 Cash at bank 1,140 Cash in hand 210 Capital account (1 March 2016) 9,300 Drawings 2,850 Furniture, at cost 1,440 Delivery van, at cost 2,400 Accumulated depreciation - Furniture (1 March 2016) 280 Accumulated depreciation - Delivery van (1 March 2016) Inventory (1 March 2016) 320 2,970 32,760 32,760 1 Accounting in Service Industries Topic 7: Period-end Adjusting Entries Review Questions Notes: 1. Inventory 28 February 2017 $3,510. 2. Wages and salaries accrued at 28 February 2017 $90. 3. Rent prepaid at 28 February 2017 $140. 4. Van running costs owing at 28 February 2017 $60. 5. Increase the provision for doubtful debts to $330. 6. Provide for depreciation as follows: 10% using straight line method. 7. Bad debts written off during the year $810 Required: (a) Draw up the Income Statement for the year ended 28 February 2017.