Splish Boutique Trial Balance December 31 Debit Credit Cash 24,400 Accounts Receivable 40,900 Allowance for Doubtful Accounts 768 Inventory, December 31 80,780 Prepaid Insurance 6,070 Equipment 98,000 Accumulated Depreciation-Equipment 33,860 Notes Payable 25,270 Share Capital-Ordinary 79,822 Retained Earnings 10,750 Sales Revenue 677,420 Cost of Goods Sold 443,400 Accounts Receivable 40,900 768 Allowance for Doubtful Accounts 80.780 Inventory, December 31 Prepaid Insurance 6,070 Equipment 98,000 Accumulated Depreciation-Equipment 33,860 Notes Payable 25,270 79,822 Share Capital-Ordinary Retained Earnings 10.750 Sales Revenue 677,420 Cost of Goods Sold 443.400 Salaries and Wages Expense 122,120 Advertising Expense 7.350 Office Expense 4,870 827.890 827,890 Prepare adjusting journal entries for the following. (Credit account titles are automatically inde indent manually. If no entry is required, select "No entry" for the account titles and enter O for the 1. Bad debt expense is estimated to be 1,484. 2. Equipment is depreciated based on a 7-year life (no residual value). 3. Insurance expired during the year 2,624. 4. Interest accrued on notes payable 3,408. 5. Salaries and wages earned but not paid 2,542. 6. Advertising paid in advance 768, charged to advertising expense when paid. Office supplies on hand 1,530, charged to Office Expense when purchased. 7. Prepare closing entries. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter for the amounts.) No. Date Account Titles and Explanation Debit Credit 1. Dec. 31 (To close accounts with a credit balance) 2. Dec. 31