The following trial balance was taken from te books of Cross Corporation at December 31, 2019;

Account Debit Credit

Cash $ 40,000

Accounts Receivable 108,000

Note Receivable 8,000

Allowance for Doubtful Accounts $1,800

Merchandise Inventory 54,000

Unexpired Insurance 4,800

Furniture and Equipment 1,38,000

Accumulated Depreciation 15,000

Accounts Payable 10,800

Common Stock 44,000

Retained Earnings 65,000

Sales 4,10,000

Cost of Goods Sold 1,28,000

Salaries Expense 53,000

Rent Expense 12,800

Total $546,600 $546,600

At year end, the following items have not yet been recorded.

1. Insurance expired during the year, $3,000.

2. Estimated bad debts, 1 percent of gross sales.

3. Depreciation on furniture and equipment, 10% per year.

4. Interest at 9% is receivable on the note for one full year.

5. Rent paid in advance at December 31, $6,800

(originally debited to expense).

6. Accrued salaries at December 31, $6,200.

Instructions

a) Required the necessary adjusting entries.

b) Required the necessary closing entries.