and their balances as at December 31, 2018, its second year of operation: The books of Laredo Placement Agency showed among others the following accounts Cash Accounts Receivable 80,000 30,000 Notes Receivable Allowance for bad Debts 1,500 6,500 Car Prepaid Insurance 3,750 Notes Payable Accounts Payable Accumulated Depreciation 365,000 22,500 25,000 15,000 334,050 35,000 380,000 76,500 168,000 2,500 1,800 11,500 2,500 Laredo, Capital Laredo, Personal Placement Income Rent Expense Salaries Expense Interest Income Interest Expense Gas & Oil Expense Supplies Expense The following information were given for you to be able to prepare the adjusting entries as of December 31. a. P1,000 worth of supplies are still unused at the end of the year. b. The car was purchased on March 31 of the previous year with an estimated salvage value of P65,000.Hint: Determine annual depreciation based on the accumulated depreciation provided in the year 2018. Prepaid insurance represents a balance of a one year premium expiring Feb. 28, 2019. d. The note was received from the customer on November 16, 2018 for 60 days at 24% interest. Salaries of 4 workers and clerks amounted to P800 per day from Monday to Saturday and payable every Monday. The next payroll date is January 4 covering the previous week payroll from December 28 to January 2. An advance payment for placement fee of P30,000 was included in the income account. The company makes it a policy of providing bad debts based on 1% of the yearly revenue. Required: Journalize the adjusting entries. 475