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	$ 19,000
Accounts receivable	17,100
Allowance for doubtful accounts		$ 848
Merchandise inventory	14,700
Trucks	42,000
Accumulated depreciationTrucks		0
Equipment	51,000
Accumulated depreciationEquipment		13,900
Accounts payable		5,500
Estimated warranty liability		1,900
Unearned services revenue		0
Interest payable		0
Long-term notes payable		25,000
D. Buggs, Capital		82,300
D. Buggs, Withdrawals	20,000
Extermination services revenue		80,000
Interest revenue		892
Sales (of merchandise)		89,826
Cost of goods sold	49,300
Depreciation expenseTrucks	0
Depreciation expenseEquipment	0
Wages expense	45,000
Interest expense	0
Rent expense	19,000
Bad debts expense	0
Miscellaneous expense	1,266
Repairs expense	13,000
Utilities expense	8,800
Warranty expense	0
Totals	$ 300,166	$ 300,166

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	$ 16,100
Cash balance per books	19,000
Outstanding checks	2,300
Deposit in transit	2,950
Interest earned (on bank account)	72
Bank service charges (miscellaneous expense)	25

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 $689 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 $750.
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	$ 42,000
Expected salvage value	$ 12,000
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	$ 29,000	$ 22,000
Expected salvage value	$ 3,000	$ 3,500
Useful life (years)	8	5

5. On September 1, 2021, the company is paid $14,700 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 2.5% of the extermination services revenue of $70,200 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 $25,000 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 $13,700. Bug-Off uses a perpetual inventory system.

BUG-OFF EXTERMINATORS
Balance Sheet
December 31, 2021
Assets
Current assets:
		0
Total current assets		0
Plant assets:
		0
		0
Total plant assets		0
Total assets		$0
Liabilities
Current liabilities:
Total current liabilities		$0
Long-term liabilities:
Total liabilities		0
Equity
Total liabilities and equity		$0