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From the following information prepare adjusting journal entries (AJEs): The annual provision for doubtful accounts receivable is recorded in an amount equal to 5% of
- From the following information prepare adjusting journal entries (AJEs):
- The annual provision for doubtful accounts receivable is recorded in an amount equal to 5% of gross accounts receivable less the ending Allowance account balance.
- An inventory count of the office supplies revealed $830 of supplies on hand at year-end.
- The insurance premium outstanding on January 1, 2018, covers the period January 1 through August 31, 2018. The insurance premium of $7,800 recorded in August covers the period of September 1, 2018 through August 31, 2019. Total Plumbing estimates that 75% of the premiums are attributable to general activities and 25% to selling activities. (Use Miscellaneous Expense).
- The payroll summary for the employees who are paid biweekly shows the following information at December 31, 2018:
Delivery and Warehouse Wages ............................ | $6,100 |
FICA Taxes Payable ................................................ | 440 |
Federal Withholding Taxes .................................... | 1,036 |
State Withholding Taxes | 218 |
Net pay | $4,406 |
- The employers share of the FICA tax ($440) must be accrued; no state or federal unemployment tax is incurred during the fourth quarter because all wages and salaries earned during the last quarter exceed the maximum subject to unemployment tax.
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