John Neff owns and operates Waikiki Surf Shop. A year$-$end trial balance is provided is shown.

Waikiki Surf Shop

UNADJUSTED TRIAL BALANCE

December $31,20--$

ACCOUNT TITLE DEBIT CREDIT

$1$

Cash

$30,000\mathrm{.}00$

$2$

Accounts Receivable

$22,500\mathrm{.}00$

$3$

Merchandise Inventory

$56,200\mathrm{.}00$

$4$

Estimated Returns Inventory

$800\mathrm{.}00$

$5$

Supplies

$2,700\mathrm{.}00$

$6$

Prepaid Insurance

$3,600\mathrm{.}00$

$7$

Land

$115,000\mathrm{.}00$

$8$

Building

$135,000\mathrm{.}00$

$9$

Accumulated Depreciation$-$Building

$24,000\mathrm{.}00$

$10$

Store Equipment

$75,000\mathrm{.}00$

$11$

Accumulated Depreciation$-$Store Equipment

$22,500\mathrm{.}00$

$12$

Accounts Payable

$15,000\mathrm{.}00$

$13$

Customer Refunds Payable

$1,100\mathrm{.}00$

$14$

Wages Payable

$15$

Unearned Boat Rent Revenue

$33,000\mathrm{.}00$

$16$

J$.$ Neff, Capital

$240,100\mathrm{.}00$

$17$

J$.$ Neff, Drawing

$40,875\mathrm{.}00$

$18$

Income Summary

$19$

Sales

$404,950\mathrm{.}00$

$20$

Sales Returns and Allowances

$6,000\mathrm{.}00$

$21$

Boat Rental Revenue

$22$

Purchases

$157,500\mathrm{.}00$

$23$

Purchases Returns and Allowances

$1,200\mathrm{.}00$

$24$

Purchases Discounts

$1,500\mathrm{.}00$

$25$

Freight$-$In

$675\mathrm{.}00$

$26$

Wages Expense

$63,000\mathrm{.}00$

$27$

Advertising Expense

$11,250\mathrm{.}00$

$28$

Supplies Expense

$29$

Phone Expense

$5,250\mathrm{.}00$

$30$

Utilities Expense

$18,000\mathrm{.}00$

$31$

Insurance Expense

$32$

Depreciation Expense$-$Building

$33$

Depreciation Expense$-$Store Equipment

$34$

Totals

$743,350\mathrm{.}00$

$743,350\mathrm{.}00$

Neff uses the periodic inventory system. Year$-$end adjustment data are as follows:

$($a$,$ b$)$ A physical count shows that merchandise inventory costing $$51,800$ is on hand as of December $31,20--.$

$($c$,$ d$,$ e$)$ Neff estimates that customers will be granted $$2,000$ in refunds of this year$$s sales next year and the merchandise expected to be returned will have a cost of $$1,200.$

$($f$)$ Supplies remaining at the end of the year, $$600.$

$($g$)$ Unexpired insurance on December $31,$ $$2,600.$

$($h$)$ Depreciation expense on the building for $20--,$ $$5,000.$

$($i$)$ Depreciation expense on the store equipment for $20--,$ $$3,000.$

$($j$)$ Wages earned but not paid as of December $31,$ $$1,800.$

$($k$)$ Neff also offers boat rentals which clients pay for in advance. Unearned boat rental revenue as of December $31$ is $$3,000.$

Required:

$1.$ Prepare a year$-$end spreadsheet.

$2.$ Journalize the adjusting entries.

$3.$ Compute cost of goods sold using the spreadsheet prepared for part $(1).$