Flash Company's trial balance at November 30, 2020, is presented below. Flash Company uses a periodic inventory system (With FIFO cost flow method). Flash Company November 30, 2020 Trial Balance DR CR Accounts Receivable $378,000 Allowance for Doubtful Accounts $45,000 |Accumulated Depreciation- Building 79,000 Accumulated Depreciation- Equipment 45,600 Accumulated Amortization - Patents 3,000 Building 462,000 Cash 150,000 Dividends Equipment 167,230 Goodwill 24,000 Patents 60,000 Inventory 251,000 Land 251,000 Prepaid Insurance 5,800 Accounts Payable 267,000 Notes Payable Unearned Revenue 10,000 Interest Payable Share Capital ($5 par) 880,000 Retained Earnings 295,730 Sales 833,7201 Sales Returns & Allowances 10,000 Amortization Expense 200 Bad Debt Expense Cost of Goods Sold 501,350 Depreciation Expense- Building 10,000 Depreciation Expense-Equipment 5,600 Interest Expense 6,000 Insurance Expense 1,670 Entertainment Expense Postage Expense Miscellaneous Expense Gain/Loss on Disposal of Equipment Rent Expense 69,4001 Utility Expense 11,000 Wages & Salaries Expense 94,800 Totals $2,459,050 $2,459,050 December normal Journal Entries Date Transaction Dec 1 Paid rent expense of $10,000 for December. Dec 1 Took out bank note for $300,000 with an interest rate of 12% ($5,000 of the note payable become due in 2021). Dec 3 Purchased 1,000 units of inventory for $500,000 terms 2/10 net 30 Dec 5 Sold land with cost of $35,000 for $55,000. Dec 8 Sold equipment with original cost of $50,000 and accumulated depreciation of $25,000 for $12,000. Dec 9 Purchased building for $40,000. Dec 10 Sold 400 units of inventory on account for $600,000. Dec 11 Paid for inventory purchased December 3. Dec 12 Paid postage $200, Miscellaneous $400, Entertainment $170 in cash. Dec 18 Wrote off uncollectible account $25,000. Dec 20 Received payment in full for sale on December 10. Dec 31 Declared and paid dividends of $1 per share. Dec 31 Paid wages and salaries of $15,000. Additional information: 1. A record stated that beginning inventory on December 1 should be 602 units. 2. Interest expense on the bank note on December 1 has not yet been accrued. 3. Depreciation expense for the month is $4,500 for building and $3,500 for equipment 4. Prepaid insurance of $600 expired in December. 5. Unearned revenue of $15,000 was earned during the month. 6. Amortization expense for the month $500. 7. Recorded bad debts expense based on the aging of accounts receivable, as follows: Age of Accounts 130 Days 31-60 Days 6190 Days Over 90 Days Accounts Receivable $ 600,000 $ 500,000 $ 60,000 $ 40,000 Estimated percent 0.3% 3% 30% 35% uncollectible 2. Prepare a trial balance as at December 31, 2020. (Hint: Assets first in order of liquidity). 3. Journalize and post adjusting entries in the same T accounts as requirement #1 above. 4. Prepare an adjusted trial balance as at December, 2020