The trial balance of Johnson & Johnson as of December 31, 2023, before adjustments, is as follows:

Account	Debit ($)	Credit ($)
Cash	15 billion
Accounts Receivable	20 billion
Inventory	25 billion
Prepaid Insurance	2 billion
Equipment	40 billion
Accumulated Depreciation		10 billion
Accounts Payable		12 billion
Salaries Expense	18 billion
Rent Expense	4 billion
Sales Revenue		50 billion
Cost of Goods Sold	30 billion
Income Tax Expense	8 billion

Additional adjustments:

• Depreciation expense for the year was 10 billion.
• Accrued salaries expense at the end of the year amounted to 3 billion.
• Prepaid insurance was adjusted to reflect 1.5 billion used during the year.
• Record an allowance for doubtful accounts of 2 billion.

Required:

• Prepare an adjusted trial balance for Johnson & Johnson as of December 31, 2023.
• Prepare an income statement.
• Calculate the net income after taxes.
• Determine the effect of the allowance for doubtful accounts on the balance sheet.
• Analyze the impact of adjusting entries on financial ratios.