The unadjusted trial balance of Tamarisk, Inc., a private company following ASPE, at December 31, 2020, is as follows:

		Debit		Credit
Cash		$17,400
Accounts receivable		107,600
Allowance for doubtful accounts				$3,340
Inventory		61,300
Prepaid insurance		4,672
Bond investment at amortized cost		45,600
Land		31,000
Buildings		151,400
Accumulated depreciationbuildings				12,200
Equipment		33,720
Accumulated depreciationequipment				4,496
Goodwill		16,550
Accounts payable				100,100
Bonds payable (20-year, 6%)				168,000
Common shares				116,600
Retained earnings				58,066
Sales revenue				192,500
Rent revenue				10,650
Rent expense		21,750
Supplies expense		10,300
Purchases		97,900
Purchase discounts				840
Salaries and wages expense		54,800
Interest expense		12,800
		$666,792		$666,792

Additional information:

1.		Actual rent costs amounted to $1,450 per month. The company has already paid for rent for the first quarter of 2021.
2.		The building was purchased and occupied on January 1, 2018, with an estimated useful life of 20 years, and residual value of $29,400. (The company uses straight-line depreciation.)
3.		Prepaid insurance contains the premium costs of several policies, including Policy A, cost of $2,620, one-year term, taken out on April 1, 2020; and Policy B, cost of $2,052, three-year term, taken out on September 1, 2020.
4.		A portion of Tamarisks building has been converted into a snack bar that has been rented to the Martinez Corp. since July 1, 2019, at a rate of $7,100 per year payable each July 1 in advance.
5.		One of the companys customers declared bankruptcy on December 30, 2020. It is now certain that the $2,600 the customer owes will never be collected. This fact has not been recorded. In addition, Tamarisk estimates that 5% of the Accounts Receivable balance on December 31, 2020, will become uncollectible.
6.		An advance of $650 to a salesperson on December 31, 2020, was charged to Salaries and Wages Expense.
7.		On November 1, 2018, Tamarisk issued 168 $1,000 bonds at par value. Interest is paid semi-annually on April 30 and October 31.
8.		The equipment was purchased on January 1, 2018, with an estimated useful life of 15 years, and no residual value. (The company uses straight-line depreciation.)
9.		On August 1, 2020, Tamarisk purchased at par value 40 $1,140, 8% bonds maturing on July 31, 2022. Interest is paid on July 31 and January 31.
10.		The inventory on hand at December 31, 2020, was $88,000 after a physical inventory count. (Use "Inventory" account for closing out the beginning inventory amount and recording the ending inventory amount.)

Prepare adjusting and correcting entries for December 31, 2020, using the information given. Record the adjusting entry for inventory using a Cost of Goods Sold account. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.

Account Titles and Explanation.

Debit

Credit