December

Wages earned from July $1^{st}$ through December ${31}^{st}$ was $$528,500.$ Wages earned between

December ${15}^{th}$ and December ${31}^{st}$ amounting to $$38,000$ will not be paid until January $7,2023.$

At the end of the year, $$60,000$ cash was paid to the local bank for the long$-$term note payable

taken out on January $1,2022.$ $$48,000$ of this was applied to the loan principal. The remaining

amount was the accumulated interest due for $2022.$

On December ${31}^{st},$$$517,000$ depreciation expense for the year was calculated for equipment

purchased before January $1,2022.$

On December ${31}^{st},$ the company declared dividends of $$0\mathrm{.}26$ per share to be paid at a later date.

On December ${31}^{st},$ the utility bill was paid for the year. The amount was $$52,000$ and the company

paid in cash.

On December ${31}^{st},$ the company paid in cash recurring interest on the long$-$term note acquired

prior to the year $2020.$ HINT: See prior year financial statements.

By December $31$ st$,135$ of the prepaid service hours from March $20,2022$ were completed.

A count of office supplies indicated that $$16,700$ of office supplies had been used by December

${31}^{st.}.$

Since its inception, the company has been able to collect $88\%$ of its ending accounts receivable

balance from customers that bought its product on account. Based on this information, adjust the

allowance for bad debt account. NOTE: Use the $2022$ ending accounts receivable balance to

make this calculation.