Use the following information to prepare adjusting entries for Broomfield Industries.

a. On July 1, 2019, Broomfield Industries signed a 4.2% bank loan due in 3 years. This is the only outstanding note payable.

b. Prepaid insurance represents a 12-month insurance policy purchased on May 1.

c. On November 1, 2019, Broomfield Industries paid $12,780 for a 4-month lease for office space.

d. Unearned revenue represents a 8-month contract for consulting services. The payment was received on October 1, 2019.

e. Supplies on hand total $4,674.

f. Equipment is depreciated on a straight-line basis; residual value is estimated to be $12,000 with an estimated service life of 10 years. The assets were held the entire year.

g. On August 1, Broomfield Industries issued Denver Supplies an 9-month note receivable at a 5.7% annual interest rate.

h. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The aging schedule of accounts receivable must be completed to determine management's desired balance for 2019.

i. Accrued wages totaling $71,490 were unpaid and unrecorded at December 31, 2019.

j. Utility costs incurred but unrecorded for the month of December were estimated to be $12,314.

Prepare the Aging Schedule to determine the adjustment required for the allowance method for bad debt:
Age of Accounts	Balance December 31, 2019	Estimated % Uncollectible	Estimated Amount Uncollectible
Current	526,938	1.25%
130 days past due	305,233	2.50%
3190 days past due	152,870	22.00%
Over 90 days past due	85,343	53.00%
Total Accounts Receivable	$ 1,070,384

Complete the adjusting entries, aging analysis, worksheet, income statement, statement of retained earnings, closing entries, and balance sheet.

Adjustments DR CR Adjusted Trial Balance DR CR Income Statement DR CR Balance Sheet DR CR CR | Unadjusted Trial Balance DR 270,788 1,070,384 18,514 359,180 782,572 28,728 47,880 121,296 1,118,264 118,104 111,826 32,000 4 5 Account Title 6 7 Cash 8 Accounts Receivable 9 Allowance for Doubtful Accounts 10 Interest Receivable 11 Note Receivable 12 Merchandise Inventory 13 Prepaid Insurance 14 Prepaid Rent 15 Supplies 16 Equipment 17 Accumulated Depreciation - Equipment 18 Accounts Payable 19 Salaries & Wages Payable 20 Unearned Revenue 21 Interest Payable 22 Utilities Payable 23 Note Payable (final payment due 2023) 24 Common Stock 25 Retained Earnings 26 Dividends 27 Sales 28 Consulting Revenue 29 Sales Returns and Allowances 30 Sales Discounts 31 Cost of Goods Sold 32 Salaries & Wages Expense 33 Depreciation Expense - Equipment 34 Bad Debt Expense 35 Insurance Expense 36 Rent Expense 37 Supplies Expense 38 Utilities Expense 39 Interest Revenue 40 Interest Expense 41 758.100 585,200 904,400 234,080 11,179,980 63,840 137,256 7,612,388 1,733,256 128,212 13,708,124 13,708,124 Adjustments DR CR Adjusted Trial Balance DR CR Income Statement DR CR Balance Sheet DR CR CR | Unadjusted Trial Balance DR 270,788 1,070,384 18,514 359,180 782,572 28,728 47,880 121,296 1,118,264 118,104 111,826 32,000 4 5 Account Title 6 7 Cash 8 Accounts Receivable 9 Allowance for Doubtful Accounts 10 Interest Receivable 11 Note Receivable 12 Merchandise Inventory 13 Prepaid Insurance 14 Prepaid Rent 15 Supplies 16 Equipment 17 Accumulated Depreciation - Equipment 18 Accounts Payable 19 Salaries & Wages Payable 20 Unearned Revenue 21 Interest Payable 22 Utilities Payable 23 Note Payable (final payment due 2023) 24 Common Stock 25 Retained Earnings 26 Dividends 27 Sales 28 Consulting Revenue 29 Sales Returns and Allowances 30 Sales Discounts 31 Cost of Goods Sold 32 Salaries & Wages Expense 33 Depreciation Expense - Equipment 34 Bad Debt Expense 35 Insurance Expense 36 Rent Expense 37 Supplies Expense 38 Utilities Expense 39 Interest Revenue 40 Interest Expense 41 758.100 585,200 904,400 234,080 11,179,980 63,840 137,256 7,612,388 1,733,256 128,212 13,708,124 13,708,124