Q3. The following trial balance was taken from the books of Eid Corporation on December 31, 2020.

Account Debit Credit

Cash SAR 12,000

Accounts Receivable 40,000

Note Receivable 7,000

Allowance for Doubtful Accounts SAR 1,800

Merchandise Inventory 44,000

Prepaid Insurance 4,800

Furniture and Equipment 125,000

Accumulated Depreciation--F. & E. 15,000

Accounts Payable 10,800

Share CapitalOrdinary 44,000

Retained Earnings 55,000

Sales 280,000

Cost of Goods Sold 111,000

Salaries Expense 50,000

Rent Expense 12,800

Totals SAR406,600 SAR406,600

Required:

1. Prepare the necessary closing entries. (1 mark )