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The trial balance of Pacilio Security Services Inc. as of January 1, 2017, had the following normal balances Cash Petty Cash Accounts Receivable Supplies Prepaid

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The trial balance of Pacilio Security Services Inc. as of January 1, 2017, had the following normal balances Cash Petty Cash Accounts Receivable Supplies Prepaid Rent Merchandise Inventory (23 @ $280) Land Accounts Payable Salaries Payable Common Stock Retained Earnings $78,972 100 33,440 160 3,200 6,440 4,000 250 1,400 50,000 74,662 During 2017 Pacilio Security Services experienced the following transactions 1. Paid the salaries payable from 2016 2. Paid $4,800 on March 1, 2017, for one year's lease in advance on the company van. 3. Paid $8,400 on May 2, 2017, for one year's office rent in advance. 4. Purchased $550 of supplies on account. 5. Paid cash to purchase 105 alarm systems at a cost of $285 each. 6. Pacilio has noticed its accounts receivable balance is growing more than desired and some collection problems exist. It appears that uncollectible accounts expense is approximately 3 percent of total credit sales. Pacilio has decided it will, starting this year, adopt the allowance method of accounting for uncollectible accounts. It will record an adjusting entry to recognize the estimate at the end of the year 7. In trying to collect several of its delinquent accounts, Padilio has learned that these customers have either declared bankruptcy or moved and left no forwarding address. These uncollectible accounts amount to $1,900 8. Sold 110 alarm systems for $63,800. All sales were on account. (Compute cost of goods sold using the FIFO cost flow method.) 9. Paid the balance of the accounts payable. 10.Pacilio began accepting credit cards for some of its monitoring service sales. The credit card company charges a fee of 4 porcent. Total monitoring services for the year wore $68,000. Pacilio accopted credit cards for $24,000 of this amount The other $44,000 was sales on account 11.On July 1, 2017, Pacilio replenished the petty cash fund. The fund contained $21 of currency and receipts of $50 for yard mowing, $22 for office supplies expense, and $9 for miscellaneous expenses. 12.Collected the amount due from the credit card company. 13.Paid installers and other employees a total of $45,000 cash for salaries 14.Collected $116,800 of accounts receivable during the year. 15.Paid $9,500 of advertising expense during the year 16.Paid $5,200 of utilities exponse for the year 17 Paid a dividend of $20,000 to the shareholders. Adjustments 18.There was $250 of supplies on hand at the end of the year 19.Recognized the expired rent for both the van and the office for the year 20.Recognized the uncollectible accounts expense for the year using the allowance method. 21 Accrued salaries at December 31, 2017, were $2,100

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