Question 3: Presented below is the December 31 trial balance of Juno Beach Clothing, Inc. Credit $600 26,000 Juno Beach Clothing Trial Balance December 31 Debit Cash $23,850 Accounts Receivable 16,000 Allowance for Bad Debt Inventory, December 31 73,600 Equipment 60,000 Accumulated Depreciation - Equipment Prepaid Advertising 26,700 Prepaid Insurance 5,200 Supplies 4,200 Notes Payable Accounts Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold 204,150 Salaries and Wage Expense (sales) 56,850 Salaries and Wage Expense (administrative) 79,300 $549,850 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 an 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, but not used up by the end of the year $1,100. 7. Office supplies on hand are $1,500 at the end of the year. Prepare the necessary adjusting entries and an adjusted trial balance