The work sheet-and-trial balance of Santos Corporation is reproduced on the following page.. The information below is relevant to the preparation of adjusting entries needed to both properly. match-revenues and expenses for the period and reflect the proper balances in the real and nominal accounts. Instructions As the accountant for Santos, you are to prepare adjusting entries based on the following data, entering the adjustments on the work sheet and completing the additional columns with respect to the income statement and statement of financial position. Carefully.key your adjustments and label all items. Round all.calculations to the nearest dollar. 1 1. + After an aging of accounts receivable, it was determined that three percent of the accounts will become uncollectible. I 2.- Depreciation is calculated using the straight-line method, with an eight-year life and $1,000- residual (salvage) value. I 3. Salesmen are paid commissions of 11% of sales. Commissions on sales for the last week of December have not been paid. I 4. - The note was issued on October 1, 2013, with interest at-8%, due.Feb. 1. 2014.1 5. - A physical inventory of supplies indicated $280 of supplies currently on hand. 6. Provisions of the company's lease contract specify rent payments must be made one month in advance, with monthly payments of $900/mo. This provision has been complied- with as of Dec. 31, 2013.1 FFFFFF Santos Corporation | Work Sheet Year-ended December 31, 2013 Adjustments - Dr. Cr. + Income Statement Dr. Cr. State of fin position Dr CE- Trial Balance Accounts - Dr. Cr. Cash 5,4001 Marketable Securities + ----4,0501 Accounts Receivable + --40,0001 Allow.-for-D.A. 4201 Inventory ---16,8001 Supplies + - 1,0401 Equipment + ---49,0001 Accum. Depr.-Equip. + -9,5001 Accounts Payable 4,4001 Notes Payable + - 4,2501 Common Shares +40,000 Retained Eamings + 25,3401 Cost of Goods Sold - 238,5201 Office Salaries + -20,8001 Sales Commissions + 29,0001 Rent Expense ......7.2001 Misc. Expense - -2,2001 Sales + + 330 1001 ...Totals 414.010 - 4140101