Caso 1 Taylor Lewis established their corporation, Taylor's Fashions, Inc., several years ago in Boulder, Colorado, to sell trendy Fashions. The annual reporting period for the company ends December 31. Taylor prepared the adjusted trial balance below at the end of 2023. However, the CPA audited the trial balance information that was presented and found several items that need to be updated before financial statements can be prepared. The items are listed belowTaylor's trial balance. All amounts in the trial balance and listed items to be updated are in thousands of dollars. Taylor's Fashions Adjusted Trial Balance December 31, 2023 Debit Credit Cash Accounts receivable Allowance for doubtful accounts Inventories. Prepaid expenses Land Building 570 373 18 539 59 22 189 Equipment (furniture, fixtures, and computers) 360 Accumulated depreciation Software Patents Goodwill Accounts payable Accrued liabilities 222 90 1 161 252 182 Income taxes payable Long-term debt Common stock Additional paid-in capital Retained earnings 16 49 3 Sale revenue Credit Card discounts Cost of goods sold Advertising expense Utilities expense Wages expense Interest expense Total 243 1,107 2,487 53 1,306 145 85 625 1 4,579 4,579 a. On the last day of the year, failed to record the $100 sale of merchandise to a customer who paid with his Visa credit card. Visa charges Taylor's Fashions a 3 percent fee. b. On December 31, failed to write off a $3 bad debt.