The following Unadjusted Trial Balance was taken from the books of Sophia Corporation at December 31 2019.

		Account	Debit	Credit
Cash			$ 40,000
Accounts Receivable			108,000
Note Receivable			8,000
Allowance for Doubtful Accounts				$ 1,795
Merchandise Inventory			54,000
Prepaid Insurance			5,800
Equipment			138,000
Accumulated Depreciation				0
Accounts Payable				10,800
Common Stock				44,000
Retained Earnings				65,000
Sales Revenue				410,000
Purchases			128,000
Purchases Discounts				16,000
Salaries Expense			53,000
Rent Expense			12,795
	Totals		$547,595	$547,595

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

1. The prepaid insurance account represents 30 month insurance paid in advance on March 1, 2019.
2. A customer goes bankrupt in 2019 so her account is determined to be uncollectible in the amount of $2,500. This has not yet been recorded.
3. Bad Debts is estimated based on 4 percent of ending Accounts Receivable.
4. Interest at 8% is receivable on the note of $8,000 that was signed on August 1, 2019.
5. Equipment was purchased on April 1, 2019 and depreciation is calculated using straight line method with estimated residual value of $8,000 and estimated useful life of 8 years.
6. An inventory count determined that the ending balance on Dec 31, 2019 in Inventory should be $51,200.

Required:

Prepare the necessary adjusting entries at December 31, 2019.