Problem- The following accounts were taken from the ledger of Ways Trading as of December 31, 2012; Account Titles Credit Cash Debit 30,000 12,000 500 Data for adjustments: 1. Inventory, December 31 P 60.000 2. Increase the allowance for bad debts to 5% of accounts receivable. 3. Depreciation of furniture and fixtures, 10% a year. 4. Store supplies used, P400 5. The Notes Receivable represents a 60-day, 12% note dated December 11, 2006 for which no interest has been collected 6. Accrued salaries, P 10,000. 7.1/3 of the Interest Income is earned at the end of the period. 6,000 40,000 600 60,000 3,000 12.000 10,000 74,900 Required: 1. A 10-column worksheet (Closing Entry Method) 2. Income Statement with Supporting Notes 3. Closing Entries 2.000 300.000 Accounts Receivable Allowance for Bad Debts Notes Receivable Inventory, January 1 Store Supplies Inventory Furniture and Fixtures Accumulated Depreciation Accounts Payable Notes Payable Castro, Capital Castro, Drawing Sales Sales Sales Discounts sales Ren Returns and Allowances Purchases Freight In Purchase Discounts Purchase Returns and Allowances Advertising Expense Salaries Expense Utilities Expense Interest Income Interest Expense Totals 1,000 2,000 200,000 5,000 2.000 4.000 4,000 38,000 6,000 600 400 407,000 407,000