The fiscal year-end unadjusted trial balance for

Nelson Company is found on the trial balance

tab.

Rent expense and salaries expense are equally

divided between selling activities and general

and administrative activities. Nelson Company

uses a perpetual inventory system.

Descriptions of items that require adjusting

entries on January 31, 2021, follow.

a. Store supplies still available at fiscal year-end

amount to $1,750.

b. Expired insurance, an administrative expense, for

the fiscal year is $1,400.

c. Depreciation expense on store equipment, a

selling expense, is $1,525 for the fiscal year.

d. To estimate shrinkage, a physical count of ending

merchandise inventory is taken. It shows $10,900

of inventory is still available at fiscal year-end.