Golden Wedding Dress Company designs custom wedding dresses for brides to be. The person preparing the adjusting entries at year-end was unable to complete the adjustments due to illness. You have been given the following unadjusted trial balance along with some additional information for the December 31, 2020, year-end. Account Accounts receivable Accum, deprec., building Accum. deprec., equipment Advance sales Allowance for doubtful accounts Building Cash Equipment Estimated warranty liability Other information 1. Assume all accounts have a normal balance. Unadjusted Balance $ 81,900 Land Account 127,000 Merchandise inventory 343,000 Mortgage payable 227,000 Sarah Golden, capital 200 Note payable 437,000 Other operating expenses 88,200 Sales, 641,000 Salaries & admin expense 4,300 Sales returns and allowances. Unadjusted Balance 132,000 72,000 226,937 222,783 161,000 1,172,000 1,356,000 35,420 8,700 2. 80% of the balance in the Advance Sales account is for wedding dresses to be made and delivered by Golden during 2021; the remaining 20% is from sales earned during 2020 3. Golden warranties its wedding dresses against defects and estimates its warranty liability to be 3% of adjusted net sales. 4. The 4%, 5-year note payable was issued on October 1, 2020, interest is payable annually each September 30 5. The mortgage is paid annually on the first day of the next year. The next mortgage payment will be paid consisting of $9,077 interest and $24,402 principal for a total of $33,479 5. The mortgage is paid annually on the first day of the next year. The next mortgage payment will be paid consisting of $9.077 interest and $24,402 principal for a total of $33,479 6 Uncollectible accounts are estimated to be 1% of outstanding receivables. 7. A physical count of the inventory showed a balance actually on hand of $62,700 8. Sarah promised her operations manager a year-end performance bonus of $2,575, which would be paid with her salary in January for high sales achieved this year. Required: 1. Based on the information provided, journalize the adjusting entries at December 31, 2020 View transaction list Journal entry worksheet < 1 2 3 4 5 G 7 Record to adjust for earned sales. Note: Enter debits before credits. < Prev 2 of 2 Next