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Requirement Hide Folder Information Instructions Prepare a classified income statement for the month-ended October 31 31 During October, the firm had net credit sales of $10,140. From experience with similar businesses, the previous accountant had estimated that 1.0 percent of the firm's net credit sales would result in uncollectible accounts. Record an adjustment for the expected loss from uncollectible accounts for the month of October. 31 On October 31 , an inventory of the supplies showed that iterns costing $2,740 were on hand. Record an adjustment for the supplies used in October. 31 On September 30, 20X1, the firm purchased a six-month insurance policy for $8,400. Record an adjustment for the expired insurance for October. 31 On October 1,201, the firm signed a three-month advertising contract for $5,100 with a local cable television station and paid the full amount in advance. Record an adjustment for the expired advertising for october. 31 On April 1, 20x1, the firm purchased equipment for $83,000. The equipment was estimated to have a useful life of five years and a salvage value of $12,500. Record an adjustment for depreciation on the equipment for October. 31 Based on a physical count, ending merchandise inventory was determined to be $82,260