Adjusting Entries Your examination of Sullivan Company's records provides the following information for the December 31, year-end adjustments: 1 Bad debes are to be recorded at 2% of sales. Sales made on credit totaled $25,000 for the year. 2. Salaries at year-end that have accumulated but have not been paid total $1,400. 3. Annual straight-line depreciation for the company's cquipment is based on a cost of $30,000, an estimated like of 8 years, and an estimated residual value of $2,000. 4. Prepaid insurance in the amount of $800 has expired 5. Interest that has been earned but not collected total $500 0. The company has satisfied performance obligations entitats i terrentain the amount of 51.000. Interest in a note pavable that has accumulated but has not been pad totals S600) B The income tax rate 15 305 oli te nemeld is parabic in the fint quarter of the next year. The prete income before the preceding adjusting entries is 56.800 Required: Prepare the adjusting entries to record the preceding Information