Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies,

Cash 18,800 Accounts Receivable 35,800 Allowance for Doubtful Accounts 638 Inventory, December 31 84,850 Prepaid Insurance 6,860 Equipment 91,000 Accumulated Depreciation-Equipment 36,650 Notes Payable 29,280 Share Capital-Ordinary 80,329 Retained Earnings 9,970 Sales Revenue 635,513 Cost of Goods Sold 419,500 Salaries and Wages Expense 124,210 Advertising Expense 6,730 Office Expense 4,630 792,380 792,380 Prepare adjusting journal entries for the following. (Credit account titles are automatically indented when amount is ent indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) 1. Bad debt expense is estimated to be 1,319. 2. Equipment is depreciated based on a 7-year life (no residual value). 3. Insurance expired during the year 2,351. 4. Interest accrued on notes payable 3,261. 5. Salaries and wages earned but not paid 2,461. 6. Advertising paid in advance 638, charged to advertising expense when paid. 7. Office supplies on hand 1,570, charged to Office Expense when purchased. Enter the beginning balances and then post the adjusting entries to the ledger accounts. Cash Bal. Accounts Receivable Allow. for Doubtful Accts. Inventory Prepaid Insurance Prepaid Insurance Prepaid Advertising Supplies Equipment Accum. Depr.-Equipment Notes Payable Interest Payable Salaries and Wages Payable Share Capital-Ordinary Retained Earnings Sales Revenue Cost of Goods Sold Salaries and Wages Expense Advertising Expense ~ Office Expense Bad Debt Expense Depr. Exp. Insurance Expense Interest Expense