Debit Credit 2,916.00 2,916.00 5,100.00 5,100.00 1,470.00 1,470.00 X1 (Adjustment a) :.31 Uncollectible accounts expense Allowance for doubtful accounts To record estimated loss from uncollectible accounts based on 0.4% of net credit sales, $729,000 (Adjustment b) 31 Supplies expense Supplies To record supplies used during the year (Adjustment c) 31 Insurance expense Prepaid insurance To record expired insurance on 1-year $5,880 policy purchased on Oct. 1 (Adjustment d) 31 Depreciation. exp.-Store equipment Accum. depreciation-Store equip. To record depreciation (Adjustment e) 31 Salaries expense-office Salaries payable To record accrued salaries for Dec. 29-31 (Adjustment f) 31 Payroll taxes expense Social security tax payable Medicare tax pavable 14,700.00 14,700.00 3,200.00 3,200.00 244.80 198.40 46.40 244.80 198.40 46.40 360.00 (Adjustment f) 31 Payroll taxes expense Social security tax payable Medicare tax payable To record accrued payroll taxes on accrued salaries: social security, 6.2% x 3,200 = $198.40; Medicare, 1.45% x 3,200 = $46.40 (Adjustment g) 31 Interest expense Interest payable To record accrued interest on a 4-month, 6% trade note payable dated Oct. 1: $24,000 x 0.06 x 3/12 = $360.00 (Adjustment h) 31 Interest receivable Interest income To record interest earned on 9-month, 8% note receivable dated July 1: $8,900 x 0.08 x 6/12 $356.00 360.00 = 356.00 356.00 Journal entry worksheet 7