Presented below is the December 31 trial balance of Wildhorse Boutique.

WILDHORSE BOUTIQUE TRIAL BALANCE DECEMBER 31
		Debit		Credit
Cash		$20,100
Accounts Receivable		39,800
Allowance for Doubtful Accounts				$717
Inventory, December 31		80,410
Prepaid Insurance		5,350
Equipment		91,000
Accumulated DepreciationEquipment				35,600
Notes Payable				27,530
Common Stock				74,607
Retained Earnings				10,990
Sales Revenue				705,086
Cost of Goods Sold		476,900
Salaries and Wages Expense (sales)		61,200
Advertising Expense		6,790
Salaries and Wages Expense (administrative)		67,600
Supplies Expense		5,380
		$854,530		$854,530

(b1)

Prepare adjusting journal entries for the following. (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 0 for the amounts.)

1.		Bad debt expense is estimated to be $1,424.
2.		Equipment is depreciated based on a 7-year life (no salvage value).
3.		Insurance expired during the year $2,756.
4.		Interest accrued on notes payable $3,126.
5.		Sales salaries and wages earned but not paid $2,226.
6.		Advertising paid in advance $717.
7.		Office supplies on hand $1,630, charged to Supplies Expense when purchased.