Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December $31,20$X$1,$ the firm$$s general ledger contained the accounts and balances that follow.

ACCOUNTS AND BALANCES

Cash $ $30,100$ Dr$.$

Accounts Receivable $35,200$ Dr$.$

Allowance for Doubtful Accounts $420$ Cr$.$

Merchandise Inventory $86,000$ Dr$.$

Supplies $10,400$ Dr$.$

Prepaid Insurance $5,400$ Dr$.$

Office Equipment $8,300$ Dr$.$

Accumulated Depreciation$$Office Equipment $2,650$ Cr$.$

Warehouse Equipment $28,000$ Dr$.$

Accumulated Depreciation$$Warehouse Equipment $9,600$ Cr$.$

Notes Payable$$Bank $32,000$ Cr$.$

Accounts Payable $12,200$ Cr$.$

Interest Payable

Social Security Tax Payable $1,680$ Cr$.$

Medicare Tax Payable $388$ Cr$.$

Federal Unemployment Tax Payable

State Unemployment Tax Payable

Salaries Payable

Phillip Tucker, Capital $108,684$ Cr$.$

Phillip Tucker, Drawing $56,000$ Dr$.$

Sales $653,778$ Cr$.$

Sales Returns and Allowances $10,000$ Dr$.$

Purchases $350,000$ Dr$.$

Purchases Returns and Allowances $9,200$ Cr$.$

Income Summary

Rent Expense $36,000$ Dr$.$

Telephone Expense $2,200$ Dr$.$

Salaries Expense $160,000$ Dr$.$

Payroll Taxes Expense $13,000$ Dr$.$

Supplies Expense

Insurance Expense

Depreciation Expense$$Office Equipment

Depreciation Expense$$Warehouse Equipment

Uncollectible Accounts Expense

Interest Expense

ADJUSTMENTS

a$.$b$.$ Merchandise inventory on December $31,20$X$1,$ is $$78,000.$

During $20$X$1,$ the firm had net credit sales of $$560,000$; past experience indicates that $0\mathrm{.}5$ percent of these sales should result in uncollectible accounts.

On December $31,20$X$1,$ an inventory of supplies showed that items costing $$1,180$ were on hand.

On May $1,20$X$1,$ the firm purchased a one$-$year insurance policy for $$5,400.$

Three years ago the firm purchased office equipment for $$8,300.$ At that time, the equipment was estimated to have a useful life of six years and a salvage value of $$350.$

Three years ago the firm purchased warehouse equipment for $$28,000.$ At that time, the equipment was estimated to have a useful life of five years and a salvage value of $$4,000.$

On November $1,20$X$1,$ the firm issued a four$-$month, $12$ percent note for $$32,000.$

On December $31,20$X$1,$ the firm owed salaries of $$5,000$ that will not be paid until $20$X$2.$

On December $31,20$X$1,$ the firm owed the employer$$s social security tax $($assume $6\mathrm{.}2$ percent$)$ and Medicare tax $($assume $1\mathrm{.}45$ percent$)$ on the entire $$5,000$ of accrued wages.

On December $31,20$X$1,$ the firm owed the federal unemployment tax $($assume $0\mathrm{.}6$ percent$)$ and the state unemployment tax $($assume $5\mathrm{.}4$ percent$)$ on the entire $$5,000$ of accrued wages.

Required:

Prepare the Trial Balance section of a $10-$column worksheet. The worksheet covers the year ended December $31,20$X$1.$

Enter the adjustments above in the Adjustments section of the worksheet.

Complete the worksheet.