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.

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, 2021, includes the following facts

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 $683 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 $720.

c. 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	$ 36,000
Expected salvage value	$ 9,600
Useful life (years)	4

d. 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	$ 27,800	$ 19,600
Expected salvage value	$ 3,000	$ 2,900
Useful life (years)	8	5

e. On September 1, 2021, the company is paid $7,500 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.

f. 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 $63,000 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.

g. The $19,000 long-term note is an 2.5%, five-year, interest-bearing note with interest payable annually on December 31. The note was signed with First National Bank on December 31, 2021.

h. The ending inventory of merchandise is counted and determined to have a cost of $12,500. Bug-Off uses a perpetual inventory system.

Credit Debit $ 17,800 3,480 $ 836 12,900 36,000 0 47,400 12,880 5,200 1,600 19,000 28,000 40,500 Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks Accumulated depreciation-Trucks Equipment Accumulated depreciation-Equipment Accounts payable Estimated warranty liability Unearned services revenue Interest payable Long-term notes payable Common stock Retained earnings Dividends 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 14,000 68,000 880 73,026 47,500 0 39,000 13,000 1, 242 10,000 7,600 $ 249,922 $ 249,922 Cash balance per bank Cash balance per books Outstanding checks Deposit in transit Interest earned (on bank account) Bank service charges (miscellaneous expense) $ 15,500 17,800 2,000 2,650 60 19 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