The following list of accounts and their balances represents the unadjusted trial balance of Alt Company at December 31, 2018:

Cash	$25,490
Equity Investments (trading)	$60,000
Accounts Receivable	$69,000
Allowance for Doubtful Accounts		$500
Inventory	$54,720
Prepaid Rent	$36,000
Plant Assets	$160,000
Accumulated Depreciation-Plant Assets		$14,740
Accounts Payable		$11,370
Bonds Payable		$90,000
Common Stock		$170,000
Retained Earnings		$97,180
Sales Revenue		$214,800
Cost of Goods Sold	$154,400
Freight-Out	$11,000
Salaries and Wages Expense	$32,000
Interest Expense	$2,040
Rent Revenue		$21,600
Miscellaneous Expense	$890
Insurance Expense	$14,650
	$620,190	$620,190

Additional Data:

The balance in the Insurance Expense account contains the premium costs of three policies:

Policy 1, remaining cost of $2,550, 1-yr. term, taken out on May 1, 2017;

Policy 2, original cost of $10,800, 3-yr. term, taken out on Oct. 1, 2018;

Policy 3, original cost of $1,300, 1-yr. term, taken out on Jan. 1, 2018.

On September 30, 2018, Alt received $21,600 rent from its lessee for an eighteen month lease beginning on that date.

The regular rate of depreciation is 8% per year. Acquisitions and retirements during a year are depreciated at half this rate. There were no purchases during the year. On December 31, 2017, the balance of the Plant and Equipment account was $220,000.

On December 28, 2018, the bookkeeper incorrectly credited Sales Revenue for a receipt on account in the amount of $20,000.

At December 31, 2018, salaries and wages accrued but unpaid were $4,200.

Alt estimates that 2% of gross accounts receivable will become uncollectible.

On August 1, 2018, Alt purchased, as a short-term investment, 60 $1,000, 5% bonds of Allen Corp. at par. The bonds mature on August 1, 2019. Interest payment dates are July 31 and January 31.

On April 30, 2018, Alt rented a warehouse for $3,000 per month, paying $36,000 in advance.

Instructions

Record the necessary correcting and adjusting entries.

Indicate which of the adjusting entries may be reversed at the beginning of the next accounting period.