Be sure to indicate debits with (Dr.) and credits (Cr.). Use the following accounts . . . Service Revenue, Accounts Receivable, Interest Expense, Interest Payable, Bad Debts Expense, and Allowance for Doubtful Accounts.

a. Interest on notes payable of $500 accrued.

b. Services performed but unbilled total $2,000.

c. Bad debt expense for year is $1,000

Kardinal Kountry has year-end account balances of Sales Revenue $100,000, Cost of Goods Sold $50,000, and Dividends of $3,000.

Using that information, prepare the 4 closing entries and label them as (1), (2), (3), and (4) . . . and use (Dr.) for debits and (Cr.) for credits.