Verde Company had the following balances in its accounting records as of December 1, Year 2: The following accounting events occurred during December, Year 2. Event 1 Purchased $350 of office supplies on account from Office Supplies USA. 2 Purchased inventory that cost $18,600 on account from Richburg Company. 3 Paid 50% of the amount due to Richburg Company. 4 Sold 75% of the inventory purchased in event 2 for $27,000 on account. 5 Paid $12,000 cash for 6 month insurance policy. 6 Took out a $40,000 twelve-month loan. Interest at a rate of 6% will be paid on the loan. 7 Collected the amount due from the customer in event \#4. 8 Sold 100% of the inventory held at the beginning of the year for $60,000 cash. 9 Incurred $18,200 of operating expenses on account. Adjustments A Recognized accrued salaries expense of $3,500. B Had $50 of office supplies on hand at the end of the period. C Recognize one month of prepaid insurance has expired. D Physical count of inventory revealed inventory on hand of $4,300 E Accrue one month of interest on the loan