ABC Company is a merchandising business. Below are the routing transactions for ABC Company for the month of December.
Dec 1	Paid rent for December, $7500.
Dec 3	Purchased merchandise from Goat Company for $8,000 under terms 1/15, n/30, FOB Shipping Point.
Dec 4	Paid $500 cash for freight charges on purchase of Dec 3.
Dec 5	Sold merchandise to Beaver company for $22,000 under credit terms 2/10, n/60, FOB Shipping Point. The merchandise had a cost of $9000.
Dec 6	Purchased merchandise from Duck Company for 28,000, under terms n/eom.
Dec 8	Received $22,400 on account from Warthog Company, no discount. This sale was made in November.
Dec 9	After negotiations with Goat Company concerning problems with the merchandise purchased on Dec 3, ABC Company received an credit memorandum from Goat Company granting an allowance of $3,000.
Dec 10	Paid part-time sales clerk for two weeks salary including the amount owed on December 1st, $3000.
Dec 11	Sold merchandise on account to Cow Company, terms 2/10, n/60, FOB destination, $20,000. The merchandise had a cost of $11,000.
Dec 12	Paid $750 cash for shipping charges related to the Dec 11 sale to Cow Company.
Dec 13	Paid the amount due to Goat Company for the Dec 3 purchase less the allowance granted.
Dec 15	Received balance due from Beaver Company for merchandise sold on Dec 5.
Dec 16	Cow company returned merchandse from the Dec 11 sale that had cost ABC Company $1500 and been sold for $6,000. The merchandise was restored to inventory.
Dec 21	Received amount due from Cow company for the Dec 11 sale less the sale return on Dec 16.
Dec 23	Paid advertising expense for ads running the last week of December, $1750.
Dec 24	Paid part-time sales clerk for two weeks' salary, $3000.
Dec 27	Purchased office supplies on account, $900.
Dec 31	Paid Duck Company amount due from the Dec 6 purchase.
At the end of December, the following adjustment data were assembled.
a	After a physical count of inventory, it was determined that $127,200 of inventory exists at December 31.
b	1% of sales is expected to be refunded.
c	Estimated Cost of Merchandise that will be returned in the next year is $7500
d	Insurance Expired during the year, $2800.
e	Office supplies on hand at Dec 31, $1250.
f	Depreciation for December is $1100.
g	The sales clerk earned $1500 of unpaid and unrecorded salary as of Dec 31.
Directions:
1.	Journalize the routine transactions above on the Journal-December tab.
2	Use the Unadjusted Trial Balance and adjusting information provided above to journalize the 7 adjusting entries on the Journal - December tab (below the routine entries).
3	Use the Adjusted Trial Balance provided to prepare an income statement appropriate to a merchandising business, a statement of owner's equity, and a report from   the balance sheet. These should be completed on the Financial Statements tab.

Cash Petty Cash Notes Receivable Accounts Receivable ABC Company Unadjusted Trial Balance December 31, 20xx Merchandise Inventory Estimated Returns Inventory Prepaid Insurance Office Supplies Delivery Equipment Accumulated Depreciation - Delivery Equipment Accounts Payable Salaries Payable Customer Refunds Payable R.W. Miller, Capital (balance on Dec 1, 20XX) R.W. Miller, Drawing Sales Interest Revenue Cost of Merchandise Sold Sales Salaries Expense Rent Expense Delivery Expense Depreciation Expense - Delivery Equipment Advertising Expense Miscellaneous Selling Expense Office Salaries Expense Insurance Expense Office Supplies Expense Miscellaneous Administrative Expense Interest Expense $ Debit 58,050 1,000 30,000 52,430 128,750 500 8,740 2,150 60,150 30,000 659,070 92,330 62,500 39,510 7,630 13,780 5,090 52,300 15,280 8,700 14,490 2,000 1.344.450 $ Credit 22950 65000 0 3120 193870 1057860 1650 1.344.450