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.

Question 1 already complete.

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	$ 15,500
Cash balance per books	17,800
Outstanding checks	2,000
Deposit in transit	2,650
Interest earned (on bank account)	60
Bank service charges (miscellaneous expense)	1

2. 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.
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.
4. 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.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.
5. The company offers a warranty for the services it sells. The expected cost of providing warranty service is (expression error)% 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.
6. The $19,000 long-term note is an (expression error)%, five-year, interest-bearing note with interest payable annually on December 31. The note was signed with First National Bank on December 31, 2021.
7. The ending inventory of merchandise is counted and determined to have a cost of $12,500. Bug-Off uses a perpetual inventory system.

a. Reconciled balance of cash	$16,150
a. Omitted check	$1,691
b. Necessary adjustment	$567
c. Depreciation expense	$6,600
	Sprayer	Injector
d. Depreciation expense	$3,100	$3,340
	Extermination Services Revenue	Unearned Services Revenue
e. Ending balances after adjustment	$63,000	$5,000
	Warranty Expense	Estimated Warranty Liability
f. Ending balances after adjustment	$1,575	$25
	Interest Expense	Interest Payable
g. Ending balances after adjustment	$0	$0

2. Use the results of part 1 to complete the six-column table by first entering the appropriate adjustments for items a through g and then completing the adjusted trial balance columns. Hint: Item b requires two adjustments.

BUG-OFF EXTERMINATORS
December 31, 2021
Account Title	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$17,800
Accounts receivable	3,480
Allowance for doubtful accounts		$836
Merchandise inventory	12,900
Trucks	36,000
Accumulated depreciationTrucks		0
Equipment	47,400
Accumulated depreciationEquipment		12,880
Accounts payable		5,200
Estimated warranty liability		1,600
Unearned services revenue		0
Interest payable		0
Long-term notes payable		19,000
Common stock		28,000
Retained earnings		40,500
Dividends	14,000
Extermination services revenue		68,000
Interest revenue		880
Sales		73,026
Cost of goods sold	47,500
Depreciation expenseTrucks	0
Depreciation expenseEquipment	0
Wages expense	39,000
Interest expense	0
Rent expense	13,000
Bad debts expense	0
Miscellaneous expense	1,242
Repairs expense	10,000
Utilities expense	7,600
Warranty expense	0
Totals	$249,922	$249,922	$0	$0	$0	$0

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