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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

  1. From the following information prepare adjusting journal entries (AJEs):

  1. 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.

  1. An inventory count of the office supplies revealed $830 of supplies on hand at year-end.

  1. 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).

  1. 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

  1. 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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