The listing below represents an excerpt of the unadjusted trial balance for The Drake Hotel as at December $31,2018.$

The business uses a perpetual inventory system.

$\backslash$table$[[$Account Name,Debit,Credit$],[$Cash$,4000,],[$Accounts Receivable,$46000,],[$Allowance for Doubtful Accounts,$55000,],[$Inventory$,2760,],[$Prepaid Insurance,$7200,],[$Prepaid Rent,$98000,],[$Property$,$ Plant & Equipment,,$13600],[$Accumulated Depreciation $($PP&E$),,10930],[$Accounts Payable,,$50000],[$Bonds Payable,,$7200],[$Unearned Rent Revenue,,$100000],[$Common Stock,$160000,51600],[$Retained Earnings,$32000,],[$Sales$,2000,],[$Rental Revenue,$2890,],[$Cost of Goods Sold,,$],[$Salaries & Wages,,$],[$Interest Expense,,$],[$Warehouse Rent Expense,,$]]$

Instructions

Prepare all adjusting entries in general journal form using the information below. Be sure to show your calculations and descriptions to obtain full marks. $(4$ @ $3=12)$

a$.$ On November $1,2018,$ Riri, the bookkeeper, received $$7200$ rent from a lessee for an $18$ month lease beginning on that date. She credited Unearned Rental Revenue for the full amount. Record the adjustment required on December $31,2018$ for the $2$ months of earned revenue.

b$.$ Riri estimates that $4\%$ of the Accounts Receivable balances on December ${31}^{st}$ will become uncollectible. Record the adjustment to the Allowance account required on December ${31}^{st}$ to reflect this.

c$.$ A physical $$ount of inventory was completed on December ${31}^{st}$ and showed only $$54000$ on hand. Record thk adjusting

entry using the Cost of Goods Sold account. d$.$ The prepaid insurance account represents a $3-$year term, taken out on April $1,2018.$ Record the entry to expense the portion of the policy which has expired.