1. The inventory count on December 31, 2019 included $22,000 of product which have been recalled by the manufacturer due to health concerns. This inventory is included in the inventory reported on the unadjusted trial balance and no adjustment has been made in the accounts.
2. The company received $45,000 worth of product on January 2, 2020, that had been shipped by the supplier December 29, 2019, FOB destination. This inventory is included in the inventory reported on the unadjusted trial balance as the invoice had been faxed to RLDL on December 29 and it was recorded immediately.
3. The company renewed its annual insurance policy which runs from June 1, 2019 to May 31, 2020 for $24,000. The full amount was paid and expensed on June 1st.
4. During the year the company sold old office and storage equipment from the rented warehouse with an original cost of $70,000. The accumulated depreciation on this equipment was $45,500 and this was the only sale of property, plant & equipment during the year. The sale was recorded correctly.
5. Depreciation expense for the year ended December 31, 2019 has been calculated correctly by the controller. She has asked that you record it, as follows:

Buildings $75,000

Warehouse equipment - $60,000

Office and selling equipment $20,500

6. It is estimated that 3% of total accounts receivable at December 31, 2019 may not be collected and half of these were in BC. RLDL has never had a problem with collections before this year.
7. Utility bills (distribution and warehouse) for December 2019 amounting to $12,500 were received on January 2, 2020 and were paid on January 31, 2020. They have not yet been recorded.
8. All payments made to lenders in 2019 have been recorded in the interest expense account.
9. During the preparations for the 2019 year end it was discovered that advertising expense of $18,500 for a Christmas promotion campaign was not included in 2018 Distribution and warehouse expenses. RLDLs owners are not sure if they need to correct this material error in the 2018 financial statements or leave it in 2019, as thats when payment was actually made.
10. The companys tax rate is 15%.
11. RLDL prepares annual adjusting entries and does not use reversing entries. All sales and purchases are made on account.

Question: Journal entry