The trial balance for the Basket Corner, a business owned by Linda Palermo is shown.

Basket Corner

UNADJUSTED TRIAL BALANCE

December 31, 20--

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	24,000.00
2	Accounts Receivable	16,800.00
3	Merchandise Inventory	90,000.00
4	Estimated Returns Inventory	3,840.00
5	Supplies	9,600.00
6	Prepaid Insurance	6,480.00
7	Land	156,000.00
8	Building	300,000.00
9	Accumulated Depreciation-Building		120,000.00
10	Store Equipment	120,000.00
11	Accumulated Depreciation-Store Equipment		48,000.00
12	Accounts Payable		11,520.00
13	Customer Refunds Payable		4,200.00
14	Wages Payable
15	Sales Tax Payable		7,080.00
16	Unearned Rent Revenue		10,680.00
17	L. Palermo, Capital		341,172.00
18	L. Palermo, Drawing	31,200.00
19	Income Summary
20	Sales		630,168.00
21	Sales Returns and Allowances	17,400.00
22	Rent Revenue
23	Purchases	150,000.00
24	Purchases Returns and Allowances		1,680.00
25	Purchases Discounts		2,160.00
26	Freight-In	2,520.00
27	Wages Expense	150,000.00
28	Advertising Expense	15,600.00
29	Supplies Expense
30	Phone Expense	1,620.00
31	Utilities Expense	9,600.00
32	Insurance Expense
33	Depreciation Expense-Building
34	Depreciation Expense-Store Equipment
35	Rent Expense	72,000.00
36	Totals	1,176,660.00	1,176,660.00

Year-end adjustment information is provided below.

(a, b)	A physical count shows that merchandise inventory costing $102,000 is on hand as of December 31, 20--.
(c, d, e)	Palermo estimates that customers will be granted $6,840 in refunds of this years sales next year and the merchandise expected to be returned will have a cost of $5,160.
(f)	Supplies remaining at the end of the year, $3,960.
(g)	Unexpired insurance on December 31, $4,560.
(h)	Depreciation expense on the building for 20--, $15,000.
(i)	Depreciation expense on the store equipment for 20--, $6,000.
(j)	Unearned rent revenue as of December 31, $5,400.
(k)	Wages earned but not paid as of December 31, $4,200.

Required:

1.	Complete the Adjustments columns.
2.	Complete the spreadsheet.
3.	Enter the adjustments in a general journal.