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ing the course of the year 2 audit of Smithsone Company, the auditor discovered the following situations that or may not require an adjusting journal

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ing the course of the year 2 audit of Smithsone Company, the auditor discovered the following situations that or may not require an adjusting journal entry. Each audit finding is independent of any of the other findings. ct the account or accounts that would comprise the adjusting journal entry, if required, to correct the audit ng. The first drop-down menu represents the account to DEBIT and the second drop-down menu esents the account to CREDIT. Accounts may be used once, more than once, or not at all. Findings he bank's confirmation reply regarding the company's line of credit indicated that the December, year 2, terest was unpaid at year-end. Accruals for monthly interest expense have been made for 11 months in ye by the company. Dr [Select ] Cr [Select] Employee overtime pay for hours worked before year-end, but paid in the following year, was not reco year 2. Dr [Select] Cr [Select] In the last week of year 2, the company recorded revenue for services rendered to some clients in yea [Select) cr Select During year 2, a former client sued the company for inappropriate work. Legal counsel has advised th reasonably possible that the company will be assessed damages. An amount can be estimated. Dr [ Select Cr [ Select 5. At the end of year 2, a major customer filed for bankruptcy. Dr Select] [ Select]

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