During the second half of December 20-1, TJ's Specialty Shop engaged in the following transactions:

Dec. 16Received payment from Lucy Greene on account, $1,960.16Sold merchandise on account to Kim Fields, $160, plus sales tax of $8. Sale No. 640.17Returned merchandise to Evans Essentials for credit, $150.18Issued Check No. 813 to Evans Essentials in payment of December 1 balance of $1,250, less the credit received on December 17.19Sold merchandise on account to Lucy Greene, $620, plus tax of $31. Sale No. 641.22Received payment from John Dempsey on account, $1,560.23Issued Check No. 814 for the purchase of supplies, $120. (Debit Supplies)24Purchased merchandise on account from West Wholesalers, $1,200. Invoice No. 465, dated December 24, terms n/30.26Purchased merchandise on account from Nathen Co., $800. Invoice No. 817, dated December 26, terms 2/10, n/30.27Issued Check No. 815 to KC Power & Light (Utilities Expense) for the month of December, $630.27Sold merchandise on account to John Dempsey, $2,020, plus tax of $101. Sale No. 642.29Received payment from Martha Boyle on account, $2,473.29Issued Check No. 816 in payment of wages (Wages Expense) for the two-week period ending December 28, $1,100.30Issued Check No. 817 to Meyers Trophy Shop for a cash purchase of merchandise, $200.As of December 16, TJ's account balances were as follows:

AccountAccount No.DebitCreditCash101$ 9,705Accounts Receivable12210,256Merchandise Inventory13121,800Estimated Returns Inventory135250Supplies1411,035Prepaid Insurance1451,380Land1618,750Building17152,000Accumulated Depreciation-Building171.1$ 9,200Store Equipment18128,750Accumulated Depreciation-Store Equipment181.19,300Accounts Payable2023,600Customer Refunds Payable203300Wages Payable219Sales Tax Payable2311,378Mortgage Payable25112,525Tom Jones, Capital31190,000Tom Jones, Drawing3128,500Income Summary313Sales401124,900Sales Returns and Allowances401.11,430Purchases50164,400Purchases Returns and Allowances501.1460Purchases Discounts501.2698Freight-In502175Wages Expense51126,100Advertising Expense5124,700Supplies Expense524Phone Expense5252,180Utilities Expense5336,900Insurance Expense535Depreciation Expense-Building540Depreciation Expense-Store Equipment541Miscellaneous Expense5492,700Interest Expense5511,350$252,361$252,361TJ's also had the following subsidiary ledger balances as of December 16:

Accounts Receivable LedgerCustomerBalanceMartha Boyle, 12 Jude Lane Hartford, CT 06117$3,796Anne Clark, 52 Juniper Road Hartford, CT 061182,100John Dempsey, 700 Hobbes Dr. Avon, CT 061081,560Kim Fields, 5200 Hamilton Ave. Hartford, CT 06117Lucy Greene, 236 Bally Lane Simsbury, CT 061232,800Accounts Payable LedgerVendorBalanceEvans Essentials, 34 Harry Ave. East Hartford, CT 05234$3,600Nathen Co., 1009 Drake Rd. Farmington, CT 06082Owen Enterprises, 43 Lucky Lane Bristol, CT 06007West Wholesalers, 888 Anders Street Newington, CT 06789At the end of the year, the following adjustments (a)-(j) need to be made:

(a, b)Merchandise inventory as of December 31, $19,700.(c, d, e)Jones estimates that customers will be granted $400 in refunds of this year's sales next year, and the merchandise expected to be returned will have a cost of $300.(f)Unused supplies on hand, $525.(g)Unexpired insurance on December 31, $1,000.(h)Depreciation expense on the building for the year, $800.(i)Depreciation expense on the store equipment for the year, $450.(j)Wages earned but not paid as of December 31, $330.Required:

1.If you are not using the working papers, open a general ledger, an accounts receivable ledger, and an accounts payable ledger as of December 16. Enter the December 16 balance of each of the accounts, with a check mark in the Posting Reference column.2.Enter transactions for the second half of December in the general journal. Post immediately to the accounts receivable and accounts payable ledgers.3.Post from the journal to the general ledger.4.Prepare schedules of accounts receivable and accounts payable.6.Journalize and post adjusting entries.