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, 2019. December 31, 2019 Unadjusted Trial Balance $ 18,000 4,500 $ 838 10,700 37,000 50,000 16,200 5,250 1,650 0 17,500 70, 809 15,000 Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks Accum. depreciation-Trucks Equipment Accum. depreciation Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-term notes payable D. Buggs, Capital D. Buggs, Withdrawals Extermination services revenue Interest revenue Sales (of merchandise) Cost of goods sold Depreciation expense_Trucks Depreciation expense-Equipment Wages expense Interest expense Rent expense Bad debts expense Miscellaneous expense Repairs expense Utilities expense Warranty expense Totals 69,275 882 74,191 47,800 e 40,000 9 14,000 1,246 10,500 7,800 $255,546 $256, 546 The following information in a through h applies to the company at the end of the current year. a. The bank reconciliation as of December 31, 2019, includes the following facts. Cash balance per bank Cash balance per books Outstanding checks Deposit in transit Interest earned (on bank account) Bank service charges (miscellaneous expense) $15,600 18,000 2,050 2,200 62 20 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) b. An examination of customers' accounts shows that accounts totaling $684 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 $725. c. A truck is purchased and placed in service on January 1, 2019. Its cost is being depreciated with the straight-line method using the following facts and estimates. Original cost Expected salvage value Useful life (years) $34,590 $18,000 4 d. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2017 They are being depreciated with the straight-line method using these facts and estimates. riginal cost Expected salvage value Useful life (years) Sprayer Injector $19.900 $ 3,098 $ 3,00 3 e. On September 1, 2019, the company is paid $8,700 cash in advance to provide monthly service for an apartment complex for one year. The company began providing the semices in September. When the cash was received, the full amount was credited to the Extermination Services Revenue account. LALEIGUUIT CIVILES ROYCIUC ALLUVUL f. The company offers a warranty for the services it sells. The expected cost of providing warranty service is 4% of the extermination services revenue of $63,475 for 2019. No warranty expense has been recorded for 2019. All costs of servicing warranties in 2019 were properly debited to the Estimated Warranty Liability account. g. The $17,500 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, 2019. h. The ending inventory of merchandise is counted and determined to have a cost of $10,700. Bug-Off uses a perpetual inventory system. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req3 Req 4A Req 4B Reg 4C Prepare journal entries to record the adjustments entered on the six-column table. Assume Bug-Off's adjusted balance for Merchandise Inventory matches the year end physical count. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Do not round your intermediate calculations.) View transaction list Journal entry worksheet *Untitled - Notepad