Estimated uncollectible accounts at December 31, $16,000, based on an aging of accounts receivable. The balance of Allowance for Doubtful Accounts at December 31 was $2,000 (debit).

Description	Debit	Credit
Accounts PayableAccounts ReceivableAllowance for Doubtful AccountsNo Entry RequiredBad Debt Expense	fill in the blank 2	fill in the blank 3
Accounts PayableAccounts ReceivableAllowance for Doubtful AccountsNo Entry RequiredBad Debt Expense	fill in the blank 5	fill in the blank 6

b. The physical inventory on December 31 indicated an inventory shrinkage of $3,300.

Description	Debit	Credit
Accounts ReceivableCash Short and OverCost of Merchandise SoldMerchandise InventoryNo Entry Required	fill in the blank 8	fill in the blank 9
Cash Short and Over Cost of Merchandise Sold Merchandise Inventory No Entry Required Sales	fill in the blank 11	fill in the blank 12

c. Prepaid insurance expired during the year, $22,820.

Description	Debit	Credit
Accounts PayableCash Insurance ExpensePrepaid InsuranceNo Entry Required	fill in the blank 14	fill in the blank 15
Accounts PayableCash Insurance ExpensePrepaid InsuranceNo Entry Required	fill in the blank 17	fill in the blank 18

d. Office supplies used during the year, $3,920.

Description	Debit	Credit
CashNo Entry RequiredOffice EquipmentOffice SuppliesOffice Supplies Expense	fill in the blank 20	fill in the blank 21
Accounts PayableNo Entry RequiredOffice EquipmentOffice SuppliesOffice Supplies Expense	fill in the blank 23	fill in the blank 24

e. Depreciation is computed as follows:

Asset	Cost	Residual Value		Acquisition Date	Useful Life in Years	Depreciation Method Used
Buildings	$900,000	$0		January 2	50	Double-declining-balance
Office Equip.	246,000	26,000		January 3	5	Straight-line
Store Equip.	112,000	12,000		July 1	10	Straight-line

Description	Debit	Credit
Accumulated Depreciation-BuildingsBuildingsBuildings ExpenseDepreciation Expense-BuildingsNo Entry Required	fill in the blank 26	fill in the blank 27
Accumulated Depreciation-Office EquipmentDepreciation Expense-Office EquipmentNo Entry RequiredOffice EquipmentOffice Equipment Expense	fill in the blank 29	fill in the blank 30
Accumulated Depreciation-Store EquipmentDepreciation Expense-Store EquipmentNo Entry RequiredStore EquipmentStore Equipment Expense	fill in the blank 32	fill in the blank 33
Accumulated Depreciation-BuildingsBuildingsBuildings ExpenseDepreciation Expense-BuildingsNo Entry Required	fill in the blank 35	fill in the blank 36
Accumulated Depreciation-Office EquipmentDepreciation Expense-Office EquipmentNo Entry RequiredOffice EquipmentOffice Equipment Expense	fill in the blank 38	fill in the blank 39
Accumulated Depreciation-Store EquipmentDepreciation Expense-Store EquipmentNo Entry RequiredStore EquipmentStore Equipment Expense	fill in the blank 41	fill in the blank 42

f. A patent costing $48,000 when acquired on January 2 has a remaining legal life of 10 years and is expected to have value for eight years.

Description	Debit	Credit
Amortization Expense-PatentsCashDepreciation Expense-PatentsNo Entry RequiredPatents	fill in the blank 44	fill in the blank 45
Amortization Expense-PatentsCashDepreciation Expense-PatentsNo Entry RequiredPatents	fill in the blank 47	fill in the blank 48

g. The cost of mineral rights was $546,000. Of the estimated deposit of 910,000 tons of ore, 50,000 tons were mined and sold during the year.

Description	Debit	Credit
Accumulated DepletionDepletion ExpenseMerchandise InventoryMineral Rights ExpenseNo Entry Required	fill in the blank 50	fill in the blank 51
Accumulated DepletionDepletion ExpenseMerchandise InventoryMineral Rights ExpenseNo Entry Required	fill in the blank 53	fill in the blank 54

h. Vacation pay expense for December, $10,500.

Description	Debit	Credit
No Entry RequiredOffice Salaries ExpenseSalaries PayableVacation Pay ExpenseVacation Pay Payable	fill in the blank 56	fill in the blank 57
No Entry RequiredSalaries PayableSales Salaries ExpenseVacation Pay ExpenseVacation Pay Payable	fill in the blank 59	fill in the blank 60

i. A product warranty was granted beginning December 1 and covering a one-year period. The estimated cost is 4% of sales, which totaled $1,900,000 in December.

Description	Debit	Credit
CashNo Entry RequiredProduct Warranty ExpenseProduct Warranty PayableSales	fill in the blank 62	fill in the blank 63
CashNo Entry RequiredProduct Warranty ExpenseProduct Warranty PayableSales	fill in the blank 65	fill in the blank 66

j. Interest was accrued on the note receivable received on October 17. Assume 360 days per year.

Description	Debit	Credit
Interest PayableInterest ReceivableInterest RevenueNo Entry RequiredPrepaid Interest	fill in the blank 68	fill in the blank 69
Interest PayableInterest ReceivableInterest RevenueNo Entry RequiredPrepaid Interest	fill in the blank 71	fill in the blank 72