Investment properties are measured using cost model 2. A full year depreciation is taken in the year of acquisition and no depreciation is taken in the year of disposition. 3. The accounting policy is to report inventory at lower of cost and net realizable value applied to total inventory. Cost is determined under the first-in, first-out method. The entity used the direct write-off method of recording inventory write-down. Any inventory loss will be charged directly to cost of goods sold account. 4. In estimating allowance for doubtful accounts, the entity used percentage of accounts receivables. The policy is to maintain an allowance for doubtful accounts equal to 10% of the outstanding accounts receivable. 5. The entity opted to use the straight line method of depreciation for all property, plant and equipment. Residual values are ignored because they are considered immaterial. The following are the estimated useful life of the properties: a. Office Building 20 years b. Office Furniture and Fixtures 5 years c. Store Building 20 years d. Store equipment 6 yearsRecord adjusting entries for the year- ended December 31, 2022: A. Depreciation on the office and store buildings, office furniture and fixtures and store equipment. B. Accruals of interest expense and interest income. C. Expiration of insurance premiums D. Provision for doubtful accounts E. Amortization of discounts or premiums F. Recognition of changes in fair values G. Bank reconciling items. 3. Post adjusting entries and prepare an ADJUSTED trial balance. 4. Post to the general ledger using T-accounts.