PROBLEMS IN ADJUSTING ENTRIES FOR BAD DEBTS AND DEPRICIATION Additional data needed for Adjustments: a) Increase the allowance for doubtful accounts to 5% of accounts receivable. b) The notes received from the customers consists of: a. 30-day, 9% note for $4,000 dated June 10,2015 b. 60-day $800 note date June 5, 2015 No interest has been collected on these notes. c) The business has paid on January 1, 2014 insurance premium for a two-year policy effective on that date. d) The store furniture & fixtures are depreciated over a useful life of 5 years. Of those on hands as of June 30, $6,000 were acquired only on June 1, 2014. The office furniture & fixtures are to depreciated at a rate of 20% per annum. e) Sales salaries of $550 has accrued on as of June 30. f) On May 1, 2015, the business paid for a 3-month advertising contract for $900. g) The notes payable represents a 60-day, 18% note dated June 10, 2015 for which no interest has yet been paid. h) The received commission of $2,400 but only one-third (1/3) of this has been earned by the company. i) Merchandise unsold, per physical count of June 30, 2015, amounted to three- fourth (3/4) of the beginning inventory. j) Accrue 3% percentage tax on net sales. Last quarter of June 30 net sales amounted to $175,200. Required: 1. Prepare an eight (8)-column worksheet. 2. Prepare an income statement and a statement of financial position. Three-fourth (3/4) of rent and utilities should be allocated to selling expense. 3. Make the necessary closing entries. 4. Prepare a post-closing trial balance. 5. Prepare the reversing entries. 6. Make a financial statement analysis to evaluate profitability, solvency and liquidity of the business, Include efficiency in use of assets