Question 3: Presented below is the December 31 trial balance of Juno Beach Clothing, Inc. Credit $ 600 JUNO BEACH CLOTHING, INC. TRIAL BALANCE DECEMBER 31 Debit Cash $ 23,850 Accounts Receivable 16,000 Allowance for Doubtful Accounts Inventory, December 31 73,600 Prepaid Insurance 5,200 Equipment 60,000 Accumulated Depreciation - Equipment Notes Payable Accounts Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold 204,150 Salaries and Wages Expense (sales) 56,850 Advertising Expense 26,700 Salaries and Wages Expense (administrative) 79,300 Supplies Expense 4,200 $549.850 26,000 21,000 18,400 10,000 76,550 397,300 $549,850 The books are closed yearly on December 31. Additional information is provided below: 1. Bad debt expense is estimated to be $1,600. 2. Equipment is depreciated based on a 8-year life (no salvage value). 3. Insurance expired during the year $3,650. 4. Interest accrued on notes payable $2,050. 5. Sales salaries and wages earned but not paid $2,750. 6. Advertising paid in advance $1,100, charged to Advertising Expense when purchased 7. Office supplies on hand $900, charged to Supplies Expense when purchased. Prepare an Adjusted Trial Balance. Question 4: Busby Corp. uses cash-basis accounting for its records. During 2019, Busby collected $780,000 from its customers, made payments of $420,000 to its suppliers for inventory, and paid $170,000 for administrative costs. Busby wants to prepare accrual-basis financial statements. In gathering information for the accrual-basis financial statements, Busby discovered the following: 1. Customers owed Busby $40,000 at the beginning of 2019 and $36,000 at the end of 2019. 2. Busby owed suppliers $19,000 at the beginning of 2019 and $28,000 at the end of the 2019. 3. Busby's beginning inventory was $63,000 and its ending inventory was $47,000. What should Busby's Gross Profit be on accrual basis