The following information is given at the beginning of December.

Debit Credit

Cash $67,500

Accounts receivables $21,000

Allowance for uncollectible accounts $7,000

Inventory (1,100 units at $7) $7,700

Accounts payable $25,400

Common stock $43,000

Retained earnings $20,800

Total $96,200 $96,200

Record the following four transactions as adjusting and prepare the t-account

Dec 31 The company estimates 20% of the ending balance of accounts receivables is not going to be collected. (Hint: Remember to consider the balance in the allowance for uncollectibe account, if any.)

Dec 31 Record December's adjustment to accrue interest for the notes receivables.

Dec 31 The company uses the lower of cost or net realizable value method for inventory valuation. The net realizable value of the inventory is $8 per unit. Make the adjusting entry if necessary.

Dec 31 Calculate depreciation using Straight line method. The equipment purchased has a useful life of 72 months and no residual value. Record the depreciation for the month of December.

Prepare the Multi-step Income Statement, Statement of Stockholders Equity, and Classified Balance Sheet under the Financial Statements tab for the month ended December 31, 20XX

Check point: Total assets $117,500

Date	Description	Debit	Credit
1-Dec	Equipment	$ 21,600
	Cash		$ 21,600
1-Dec	Note Receivable	$ 14,000
	Cash		$ 14,000
6-Dec	Inventory	$ 38,000
	Accounts Payable		$ 38,000
12-Dec	Accounts Receivable	$ 64,000
	Sales revenue		$ 64,000
12-Dec	Cost of Good Sold	$ 28,700
	Inventory		$ 28,700
20-Dec	Account Payable	$ 28,000
	Cash		$ 28,000
23-Dec	Cash	$ 16,000
	Account Receivable		$ 16,000
28-Dec	Allowance for uncollectable account	$ 2,800
	Account Receivable		$ 2,800
30-Dec	Income tax expense	$ 4,400
	Cash		$ 4,400
31-Dec	Bad debit expeses	$ 9,040
	Allowance for doubtful accounts		$ 9,040
31-Dec	Interest revenue	$ 140
	Interest receivable		$ 140
31-Dec	Loss from write down of inventory	$ 3,400
	inventory		$ 3,400
31-Dec	Depreciation expense	$ 300
	Accumulated depreciation		$ 300