PREPARE AN ADJUSTING ENTRY FOR THE FOLLOWING BELOW:

Coughlans Flowers
Unadjusted trial Balance
December 31, 2017
			Dr.	Cr.
Cash			$125,600
Investments Accounts receivable, 12/31/16			300,000 116,200
Allowance for doubtful accounts, 12/31/16				$20,000
Inventory, 12/31/16			62,000
Furniture and Fixtures			118,200
Accumulated depreciation, Furniture & Fixtures 12/31/16				32,400
Accounts payable, 12/31/16				42,000
Capital stock, $10 par value				50,000
Retained earnings, 12/31/16				242,000
Sales				1,549,100
Notes payable 4%, due 3/31/18				200,000
Purchases			906,600
Fencing expense			80,000
Salaries expense			262,000
Income tax expense			45,000
Interest expense				6,000
Insurance expense			34,100
Rent expense			34,200
Utilities expense			12,600
Freight in			15,000
Freight out			17,000
Travel expense			13,000
TOTALS			$2,141,500	$2,141,500

1. Amounts due from customers totaled $175,000 at 12/31/2017.

3. A further analysis and aging of accounts receivable at 12/31/2017 shows approximately $18,000 of potential uncollectible accounts other than the Jims Retail Store account.

5. Based on a physical count, the inventory at 12/31/2017 was valued at $65,000.

10. On November 15, 2017, one of Coughlans delivery drivers was in an accident with another vehicle. Unfortunately, the driver had a few beers at lunch and was cited for impaired driving. The company is being sued for $200,000. The first court date has been scheduled for Feb. 15, 2018. Coughlans attorney advises her to settle at the time. The estimated settlement will be between $125,000 and $175,000.

12. Coughlans has made estimated tax payments of $15,000 per quarter for the first three quarters of 2016. Coughlans tax rate is 35% of pretax income.