The following list of accounts and their balances represents the unadjusted trial balance of A$AP LLC at October 31, 2017 the end of their fiscal year: Cash $ 6,550 Accounts Receivable 60,000 Inventory 58,000 Prepaid Insurance 7,500 Notes receivable ( 9 % ,5 year note due 6/1/2022) 20,000 Land 10,000 Plant & Equipment 80,000 Accounts Payable 38,810 Prior Period Adjustment (refund of 2014 taxes) 12,000 Common Stock 140,000 Retained Earnings 80,660 Sales 236,826 Rental Expense 13,991 Cost of Goods Sold 170,400 Repairs & Maintenance 15,617 Entertainment expense 7,500 Miniature golf expense 500 DWI fines 5,000 Salaries & Wages 45,600 Interest Expense 2,500 Advertising Expense 3,000 Miscellaneous Expense 1,098 Additional data: 1. On October 1, 2017, A$AP received $13,500 rent from its lessee for a 12-month lease beginning on that date, crediting Rent Expense. 2. The regular rate of depreciation is 10% per year. Acquisitions and retirements during a year are depreciated at half this rate. On 10/31/16, the balance of Plant & Equipment was $85,000. During the 2017 fiscal year $20,000 of depreciable plant & equipment was charged to Inventory. 3. A$AP estimates that 5% of the Accounts Receivable balances on 10/31/17 will become uncollectible. On 10/28/17, the bookkeeper incorrectly credited Sales for a receipt on account in the amount of $10,000. 4. Per a physical inventory, inventory on hand at 10/31/17 was $95,000. 5. Prepaid insurance contains the premium costs of two policies: Policy A, original cost of $4,500, 3-year term taken out on 7/1/16; Policy B, original cost of $3,000, 2-year term, taken out on 4/1/17. 6. On 5/31/16, A$AP rented a warehouse for $1,100 per month. No rental payments were ever made. 7. A$AP likes to play miniature golf. He purchased five coupon books for $40 each. Each book contains ten coupons that enable the holder to play one round of golf. At the end of the fiscal year 25 tickets were unused. 8. In December the company received and recorded $45,000 in advance payments for the sale of a A$AP doll. Shipments of this doll will take place during the first week in December. 9. A$AP failed to bill certain customers for $2,000 relating to services scheduled for election day. 10. Entertainment expense represents a donation to The Salvation Army for their annual Thanksgiving meals. 11. The company did not obtain the annual permits to operate. The fee of $2,500 covers the calender year. Required: (a) All necessary adjusting/correcting entries in accordance with GAAP using the information above. (b) Indicate in the right margin using an R the entries that are candidates for reversal.