Debit Credit 2500 Accounts Cash Accounts Receivable Allowance for Doubtful Accounts Activity: Financial Statements for 12/31/16 4000 300 8200 3600 Additional information: The equipment is being depreciated on a straight- line basis over a 10-year life, with no residual value. 30000 12000 Salaries accrued but not recorded total $500 3700 5000 Inventory Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Note Payable (due 7/1/17) Common Stock (1,000 shares) Retained Earnings (1/1/16 Dividends Sales Revenues Cost of Goods Sold Salaries Expense Utilities Expenses Advertising Expense Totals 8900 10200 On 1/1/16, the company had paid 3 years' rent in advance at $100 per month 1000 Bad debts are expected to be 1% of total sales 45000 21000 Interest of $400 has accrued on the note payable 7100 3300 . 4400 The income tax rate is 40% on current income and will be paid in the first quarter of 2017 85,100 85,100