August. The August transactions and adjustments are presented below: Aug. 1 Paid $21,750 for office expenses and $3,463 for the August rent. 2 Accepted a slx-month, 8\% note in exchange for Chen Enterprises' overdue account recelvable of $93,900. 8 Determined that an account recelvable from Densmore Ltd. of $71,270 is uncollectible. 9 A $303,800 partial payment on account was received from Chavier (see August 3 transaction). 10 Old equipment was sold for $5,850. The equipment's original cost was $55,450; accumulated depreciation to the date of disposal was $47,133. 14 Paid a $10,510 income tax instalment. 21 Purchased a patent for $24,180 cash. The estimated useful life of the patent is five years; the legal life, 20 years. 28 Inventory sold on credit for $60,000 and costing $32,400 was retumed by customers. 31 Recorded cash received from sales for the month, $68,830. The cost of goods sold is $31,750. 31 The monthly bank statement revealed the following unrecorded items: interest on bank loan, $1,540, and bank service charges, $1,160. 31 Reviewed outstanding accounts receivable. Determined, through an aging of accounts, that doubtful accounts totalled $319,250 at month end. of depreciation is used and depreciation is calculated to the nearest month. 31 Recorded and paid salaries for the month, $101,300. 31 Accrued interest on the Chen Enterprises note recelvable (see August 2 transaction). 31 Recorded amortization on the patent (see August 21 transaction). A full month's amortization is recorded on any intangible assets acquired during the month. (To record office expense) (To record rent expense) (To record sale on account) (To record cost of goods sold) Aug. 8 : Allowance for Doubtful Accourts Aug. 28 Refund Llablility 60000 Accounts Receivable Inventory 32400 Estimated Inventory Returns Alug. 31 Cash 68830 Sales \begin{tabular}{|c|} \hline \end{tabular} 68830 (To record sale on cash) Aug. 31 Cost of Goods Sold 31750 Inventory (To record cost of goods sold) Aug. 31 (To record interest expense) Aug. 31 Bad Debts Expense 62920 Allowance for Doubtful Accounts (To record bad debts) Aug. 31 (To record depreciation expense) Aug. 31 (To record salaries expense) Aug. 31 Interest Income (To record accrued interest) Aug. 31 403 Accumulated Amortization - Patents (To record amortization expense) Prepare an adjusted trial balance at August 31. (Round answers to 0 decimal places, e.g. 5,275.)