Prepare adjusting journal entries for the following. The books are closed yearly on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) ober Bad debt expense to be recorded is $1,469. 1. 2. Equipment is depreciated based on a 7-year life (no salvage value). 3. Insurance expired during the year $2,392. 4. Interest accrued on notes payable $3,061. 5. Sales salaries and wages earned but not paid $2,253. 6. Advertising paid in advance $660. It was charged to Advertising Expense when paid. 7. Office supplies on hand $1,500, charged to Supplies Expense when purchased. No. Account Titles and Explanation 1. 2. Debit Credit 4 Presented below is the December 31 trial balance of Blue Boutique. Blue Boutique Trial Balance December 31 Debit Credit Cash $26,200 Accounts Receivable 42,000 Allowance for Doubtful Accounts $660 Inventory, December 31 82,270 Prepaid Insurance 6,650 Equipment 91,000 Accumulated Depreciation-Equipment 37,270 Notes Payable 29,300 Common Stock 80,223 Retained Earnings 9,890 Sales Revenue 701,667 Cost of Goods Sold 477,500 Cost of Goods Sold 477,500 Salaries and Wages Expense (sales) 56,000 Advertising Expense 6,850 Salaries and Wages Expense (administrative) 65,350 Supplies Expense 5,190 $859,010 $859,010