Comprehensive Problem 3 Part 4: Note: You must complete parts 1, 2, and 3 before completing part 4 of this comprehensive problem. Based on the following selected data, journalize the adjusting entries as of December 31 of the current year. If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. a. Estimated uncollectible accounts at December 31, $16,000, based on an aging of accounts receivable. The balance of Allowance for Doubtful Accounts at December 31 was $2,000 (debit). Credit Date Description Dec. 31 Bad Debt Expense Debit 18,000 Allowance for Doubtful Accounts 18,000 b. The physical inventory on December 31 indicated an inventory shrinkage of $3,300. Credit Date Description Dec. 31 Cost of Goods Sold Debit 3,300 Inventory 3,300 c. Prepaid insurance expired during the year, $22,820. c. Prepaid insurance expired during the year, $22,820. Credit Date Description Dec. 31 Insurance Expense Debit 22,820 Prepaid Insurance 22,820 d. Office supplies used during the year, $3,920. Credit Date Description Dec. 31 Office Supplies Expense Office Supplies Debit 3,920 V 3,920 e. Depreciation is computed as follows: Asset Cost Depreciation Method Used Buildings Office Equip. Store Equip. $900,000 246,000 112,000 Residual Acquisition Useful Life Value Date in Years $0 January 2 26,000 January 3 12,000 July 1 5 Double-declining-balance Straight-line Straight-line Date Description Debit Credit Asset Cost Depreciation Method Used Buildings Office Equip. Store Equip. $900,000 246,000 112,000 Residual Acquisition Useful Life Value Date in Years $0 January 2 26,000 January 3 5 12,000 July 1 10 Double-declining-balance Straight-line Straight-line Credit Date Description Dec. 31 Depreciation Expense-Buildings Depreciation Expense-Office Equipment Debit 9,000 x Depreciation Expense-Store Equipment Accumulated Depreciation-Buildings Accumulated Depreciation Office Equipment Accumulated Depreciation-Store Equipment f. A patent costing $48,000 when acquired on January 2 has a remaining legal life of 10 years and is expected to have value for 8 years. Credit Date Description Dec. 31 Amortization Expense-Patents Debit 48,000 x Patents 48,000 x a. The cost of mineral riahts was $546.000. Of the estimated deposit of 910.000 tons of ore. 50.000 tons were mined and sold during the g. The cost of mineral rights was $546,000. Of the estimated deposit of 910,000 tons of ore, 50,000 tons were mined and sold during the year. Debit Credit Date Description Dec. 31 Depletion Expense Accumulated Depletion h. Vacation pay expense for December, $10,500. Date Description Debit Credit Dec. 31 Vacation Pay Expense Vacation Pay Payable i. A product warranty was granted beginning December 1 and covering a one-year period. The estimated cost is 4% of sales, which totaled $1,900,000 in December. Date Description Debit Credit Dec. 31 Product Warranty Expense v S S Product Warranty Payable j. Interest was accrued on the note receivable received on October 17 ($100,000, 90-day, 9% note). Assume 360 days per year. j. Interest was accrued on the note receivable received on October 17 ($100,000, 90-day, 9% note). Assume 360 days per year. Debit Credit Date Description Dec. 31 Interest Receivable Interest Revenue Feedback