- Rent on unused space is received on Feb 1 each year for one year in advance. The Unearned Rent account is reported at $1,800 on the trial balance before adjustments on December 31, 2020. The rent received on Feb 1, 2020, was 15% higher than the rent received on May l of the previous year.

- The Allowance for Doubtful Accounts was reported at $3,100 on the December 31, 2019 balance sheet. During 2020 accounts receivable in the amount of $4,000 were written off while accounts receivable previously written off in the amount of $500 were recovered. The company adjusts the Allowance for Doubtful Accounts to reflect 5% of outstanding accounts receivable at year end. Accounts receivable amounted to $75,000 at the end of 2020.

- An advertising bill in the amount of $1,650 was paid during 2019 and was erroneously charged to the Travel Expense account.