The companys heat, electric, water, and related utility bills had not been received when Joan pre pared the financial statements, so she accrued a total amount of $1,000 for the three bills in the trial balance. When the final invoices arrived, the cost actually totaled $2,500, due to an extremely cold winter and repairs needed to a frozen water pipe. In addition, there was $10,000 damage (to carpets and so on) due to the flooding caused by the frozen pipe. Joan did not record the $10,000 amount disbursed because it should be covered by the companys insurance policy. There is an $800 deductible on the insurance claim that remains outstanding and will be deducted from the reimbursement from the insurance company.

Require : prepare journal entries