Answer the following transactions with explanation on how did you get the answer from numbers 1-7. Please read and follow the direction. Thank you.

COMPILATION OF DATA FOR ADJUSTMENT adjusted before prepared. there are the trial balance at the end of the preparating period, some accounts need to be Exercise 16 5. Bad Debts The following are the items that need adjustments at the end of the accounting period 1. Accrued income 2. Accrued expense 6. Merchandise Inventory 3. Prepaid expense 7. Depreciation 4. Deferred income Direction: Identify the adjustment to be made and the pro-forma entry. Assume the company is using the liability method in no 5 and the asset method in no. 6. 1. The adjustment related to fixed asset which attempts to spread the cost of the fixed asset over its useful life Debit Credit 2. The adjustment for accounts receivable to bring it to its realizable value. Debit Credit 3 The adjustment to set up the unsold goods remaining on hand at the end of the period. Debit Credit 4. Expense already used up or incurred but not yet paid. Debit Credit 5. Uneamed Income collected but a portion of it is already earned. Debit Credit 6. Unused Supplies already paid but a portion of it is already used up. Debit Credit 7. Income already earned but not yet collected Debit Credit