The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. Nelson company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation ExpenseStore Equipment, Sales Salaries Expense, Rent ExpenseSelling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative.

NELSON COMPANY Unadjusted Trial Balance January 31
	Debit			Credit
Cash	$	20,650
Merchandise inventory		14,000
Store supplies		5,300
Prepaid insurance		2,500
Store equipment		42,900
Accumulated depreciationStore equipment				$	19,200
Accounts payable					12,000
Common stock					5,000
Retained earnings					32,000
Dividends		2,050
Sales					114,850
Sales discounts		2,000
Sales returns and allowances		2,050
Cost of goods sold		38,000
Depreciation expenseStore equipment		0
Sales salaries expense		15,400
Office salaries expense		15,400
Insurance expense		0
Rent expenseSelling space		6,500
Rent expenseOffice space		6,500
Store supplies expense		0
Advertising expense		9,800
Totals	$	183,050		$	183,050

Additional Information:

1. Store supplies still available at fiscal year-end amount to $1,900.
2. Expired insurance, an administrative expense, is $1,650 for the fiscal year.
3. Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year.
4. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,600 of inventory is still available at fiscal year-end.

1. Using the above information, prepare adjusting journal entries.