Prepare adjusting entries:

Stafford has developed plans to expand into the wholesale flower market and is in the process of negotiating a bank loan to finance the expansion. The bank is requesting 2021 financial statements prepared on the accrual basis of accounting from Stafford. During the course of a review engagement of Stafford, your firm, obtained the following information:

1. Amounts due from customers totaled $171,000 at 12/31/202 During the year the company wrote off $7,400 of receivables that were deemed to be uncollectible. An analysis of the receivables revealed that specific accounts totaling $12,400 were deemed to be uncollectible and an estimated 3% of the remaining accounts receivable balance will probably not be collected in 2022. There were no uncollectable receivables estimated at 12/31/2020.
2. On May 1, 2021, Stafford paid $14,400 to renew its comprehensive insurance coverage for one year. The premium on the previous one-year policy, which expired on April 30, 2021, was $13,200. No adjustment was made in the prior year, Stafford had never heard of a prepaid.
3. Stafford is being sued for $100,000. Stafford's attorney believes that an unfavorable outcome is probable and that a reasonable settlement is $65,000.
4. All employees are paid weekly on Friday. The average payroll is $3,300 (6-day work week) per week. Employees were last paid on Friday, December 31^st, 2021 for the week ended December 25^th. Although the employees did not work on Christmas Day, Stafford pays them for the day.
5. Stafford has made estimated tax payments of $10,000 per quarter for the first three quarters of 2021. Staffords estimated tax rate is 21%.
6. Stafford took out a 2 year note payable on April 1, 2021. The note bears interest at 4%. Principal and interest are due at maturity.
7. The company depreciates their Furniture & Fixtures over a useful life of 10 years using the straight-line method, with no salvage value.
8. The investments account is comprised of two investments. One $100,000 bond was purchased at face value and Staffords intends to hold until it matures. The interest on these bonds are 3% and is paid annually on January 31. Stafford purchased these bonds on September 1^st of the current year. The fair value of these bonds are $102,000. The other investment are shares of Google stock, which were purchased on 4/3/21 for $2,410/share. The closing price of Google on 12/31/21, was $2,894/share.