Ricardo construction began operation on December 1. in setting up its accounting procedures the company decided to debit expense accounts when it prepays its expenses and to credit revenue accounts when customers pay for services in advance prepare journal entries for items a through of and the adjusting entries as of its December 31 period end for items e through g Supplies are purchased on December 1 for $2,000 cash The company prepays its insurance premiums for $1, 540 cash on December 2 on December 15 the company receives an advance payment of $13,000 cash from a customer for remanding work on December 28, the company receives $3, 700 cash from another customer for remodeling work A physical count on December 31 indicates that the Company has customer $1, 840 of supplies available An analysis of the insurance policies in effect on December 31 shows that $3.40 of insurance coverage has expired As of December 31. only one remodeling project has been worked on and completed The $5.570 fee for this project has been received in advance and recorded as remodeling fees earned