GlobalEnergy Corp. owned the following unproved property as of the end of 2020.

Significant Leases		Insignificant Leases
Lease J	$450,000	Lease K	$55,000
Lease L	$400,000	Lease M	$45,000
Total	$850,000	Lease N	$35,000
		Lease O	$25,000
		Total	$160,000

Although no activity took place on Lease J during the year, GlobalEnergy decided that Lease J was not impaired because there were still five years left in that lease’s primary term. One dry hole was drilled on Lease L during the year; but because GlobalEnergy intended to drill one more well on Lease L in the coming year, it decided that Lease L was only 50% impaired. With respect to the insignificant leases, past experience indicates that 70% of all unproved properties assessed on a group basis will eventually be abandoned. GlobalEnergy’s policy is to provide at year-end an allowance equal to 60% of the gross cost of these properties. The allowance account had a balance of $22,000 at year end. Give the entries to record impairment, prepare the journal entries for bad debt expense, and adjust the trial balance.