Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. Following is the company's unadjusted trial balance as of December 31, 2021.

December 31, 2021
	Unadjusted Trial Balance
	Debit	Credit
Cash	$ 20,600
Accounts receivable	44,860
Allowance for doubtful accounts		$ 864
Merchandise inventory	17,100
Trucks	50,000
Accumulated depreciationTrucks		0
Equipment	55,800
Accumulated depreciationEquipment		15,260
Accounts payable		5,900
Estimated warranty liability		2,300
Unearned services revenue		0
Interest payable		0
Long-term notes payable		33,000
Common stock		35,000
Retained earnings		65,700
Dividends	28,000
Extermination services revenue		96,000
Interest revenue		908
Sales (of merchandise)		121,826
Cost of goods sold	51,700
Depreciation expenseTrucks	0
Depreciation expenseEquipment	0
Wages expense	53,000
Interest expense	0
Rent expense	27,000
Bad debts expense	0
Miscellaneous expense	1,298
Repairs expense	17,000
Utilities expense	10,400
Warranty expense	0
Totals	$ 376,758	$ 376,758

The following information in a through h applies to the company at the end of the current year.

1. The bank reconciliation as of December 31, 2021, includes the following facts.

Cash balance per bank	$ 16,900
Cash balance per books	20,600
Outstanding checks	2,700
Deposit in transit	3,350
Interest earned (on bank account)	88
Bank service charges (miscellaneous expense)	33

Reported on the bank statement is a canceled check that the company failed to record. (Information from the bank reconciliation allows you to determine the amount of this check, which is a payment on an account payable.)

2. An examination of customers accounts shows that accounts totaling $697 should be written off as uncollectible. Using an aging of receivables, the company determines that the ending balance of the Allowance for Doubtful Accounts should be $790.
3. A truck is purchased and placed in service on January 1, 2021. Its cost is being depreciated with the straight-line method using the following facts and estimates.

Original cost	$ 50,000
Expected salvage value	$ 15,200
Useful life (years)	4

4. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2019. They are being depreciated with the straight-line method using these facts and estimates.

	Sprayer	Injector
Original cost	$ 30,600	$ 25,200
Expected salvage value	$ 3,000	$ 4,300
Useful life (years)	8	5

5. On September 1, 2021, the company is paid $24,300 cash in advance to provide monthly service for an apartment complex for one year. The company began providing the services in September. When the cash was received, the full amount was credited to the Extermination Services Revenue account.
6. The company offers a warranty for the services it sells. The expected cost of providing warranty service is 2.50% of the extermination services revenue of $79,800 for 2021. No warranty expense has been recorded for 2021. All costs of servicing warranties in 2021 were properly debited to the Estimated Warranty Liability account.
7. The $33,000 long-term note is an 8%, five-year, interest-bearing note with interest payable annually on December 31. The note was signed with First National Bank on December 31, 2021.
8. The ending inventory of merchandise is counted and determined to have a cost of $15,300. Bug-Off uses a perpetual inventory system.

Required: 1. Determine amounts for the following items:

A. Correct (reconciled) ending balance of Cash; and the amount of the omitted check.

B. Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts.

C. Depreciation expense for the truck used during year 2021.

D. Depreciation expense for the two items of equipment used during year 2021.

E. The adjusted 2021 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts.

F. The adjusted 2021 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts.

G. The adjusted 2021 ending balances of the Interest Expense and the Interest Payable accounts.

a. Reconciled balance of cash
a. Omitted check
b. Necessary adjustment
c. Depreciation expense
	Sprayer	Injector
d. Depreciation expense
	Extermination Services Revenue	Unearned Services Revenue
e. Ending balances after adjustment
	Warranty Expense	Estimated Warranty Liability
f. Ending balances after adjustment
	Interest Expense	Interest Payable
g. Ending balances after adjustment