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Problem 3-9 (Part Level Submission) The unadjusted trial balance of Larkspur, Inc. at December 31, 2017, is as follows: Debit Credit Cash $17,340 Accounts Receivable

Problem 3-9 (Part Level Submission) The unadjusted trial balance of Larkspur, Inc. at December 31, 2017, is as follows:
Debit Credit
Cash $17,340
Accounts Receivable 108,500
Allowance for Doubtful Accounts $3,680
Inventory 59,400
Prepaid Insurance 4,546
Bond Investment at Amortized Cost 46,800
Land 29,000
Buildings 157,200
Accumulated DepreciationBuildings 6,390
Equipment 33,120
Accumulated DepreciationEquipment 5,520
Goodwill 16,400
Accounts Payable 101,100
Bonds Payable (20-year, 7%) 162,000
Common Shares 115,900
Retained Earnings 81,916
Sales Revenue 182,000
Rent Revenue 10,800
Advertising Expense 23,100
Supplies Expense 10,000
Purchases 97,500
Purchase Discounts 850
Salaries and wages expense 54,700
Interest Expense 12,550
$670,156 $670,156
Additional information:
1. Actual advertising costs amounted to $1,540 per month. The company has already paid for advertisements inMontezuma Magazinefor the first quarter of 2018.
2. The building was purchased and occupied on January 1, 2015, with an estimated useful life of 20 years, and residual value of $29,400. (The company uses straight-line depreciation.)
3. Prepaid insurance contains the premium costs of several policies, including Policy A, cost of $2,586, one-year term, taken out on April 1, 2017; and Policy B, cost of $1,960, three-year term, taken out on September 1, 2017.
4. A portion of Larkspurs building has been converted into a snack bar that has been rented to the Blue Spruce Corp. since July 1, 2016, at a rate of $7,200 per year payable each July 1.
5. One of the companys customers declared bankruptcy on December 30, 2017. It is now certain that the $2,680 the customer owes will never be collected. This fact has not been recorded. In addition, Larkspur estimates that 3% of the Accounts Receivable balance on December 31, 2017, will become uncollectible.
6. An advance of $520 to a salesperson on December 31, 2017, was charged to Salaries and Wages Expense.
7. On November 1, 2015, Larkspur issued 162 $1,000 bonds at par value. Interest is paid semi-annually on April 30 and October 31.
8. The equipment was purchased on January 1, 2015, with an estimated useful life of 12 years, and no residual value. (The company uses straight-line depreciation.)
9. On August 1, 2017, Larkspur purchased at par value 40 $1,170, 7% bonds maturing on July 31, 2019. Interest is paid on July 31 and January 31.
10. The inventory on hand at December 31, 2017, was $88,100 after a physical inventory count. (Use "Inventory" account for closing out the beginning inventory amount and recording the ending inventory amount.)

(a) Prepare adjusting and correcting entries for December 31, 2017, using the information given. Record the adjusting entry for inventory using a Cost of Goods Sold account.(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. Round answers to 0 decimal places, e.g. 5,275.)

No. Account Titles and Explanation Debit Credit
1.
2.
3.
4.
5.
(To write off uncollectible receivables.)
(To record bad debt expense.)
6.
7.
8.
9.
10.

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