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December 31, 2017 Unadjusted Trial balance 50,000 30,000 Cash Accounts Receivable 500 Allowance for Doubtful Accounts Short Term Note Receivable 60,000 Interest Receivable 5,000 48,000

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December 31, 2017 Unadjusted Trial balance 50,000 30,000 Cash Accounts Receivable 500 Allowance for Doubtful Accounts Short Term Note Receivable 60,000 Interest Receivable 5,000 48,000 12,000 16,000 75,000 Supplies Prepaid Insurance Inventory Vehicle Equipment 42,000 18,000 14,000 2,000 70,000 106,000 2,500 Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2017) Dividends Sales Sales Returns& Allowances Sales Discounts Cost of Goods Sold Delivery Expense Depreciation Expense Bad Debt Expense 2,000 511,000 7,000 3,000 46,000 5,000 16,000 0 98,000 40,000 195,000 15,500 Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Revenue 0 0 Loss on Disposal Interest Expense Income Tax Expense Total 6,500 36,000 766,000 766,000 On Dec. 31, 2017 merchandise was sold on account for $16,500 with a cost of $5,500 terms 3/10 net 30 1. Acounts Renead Sales Reutnu ist of bcod Sold 5,500 5,500 2. The company issued a 6 month, 12% interest note short-term note for the amount listed on the unadjusted trial balance on Oct. 1, 2017. All interest and principal will be paid back at the end of the 6 months. Write the adjusting journal entry required for its financial statements as of Dec. 31, 2017 Talerst Retend Uncollectable Accounts Receivables of $1,600 need to be written off for the year ended 2017 3. 4. Management estimates that of the remaining accounts receivable balance, $2,000 will be uncollectible. Record the adjustment based on this information. Hint: Use the AFDA balance AFTER the above write off during 2017. Use an AFDA T-account! Dett Ersense 5. A piece of equipment was retired on iie. 31, 2017. The equipment originally cost $34,000 and has related A/D of $24,000 as of n. i, :017. Additional depreciation of $3,000 needs to be recorded on this piece of equiprnt at Dec. 31, 2017. Update the depreciation belovw , (#5). Then record the retirement (#6) 3,000 6, Record the retirement of the equipment (from #5) including the gain or loss

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