You have just joined Oxley Enterprise as the company accountant. You replaced the former accountant who resigned abruptly. In preparing the financial statements for the year ended 31 December 2021, you found the following:

1. On 15 Nov 2021, the company paid $120,000 for a series of advertisements to appear at the beginning of every month from Dec 2021 to Nov 2022. The previous accountant recorded this transaction as:

DR Advertising Expense $120,000

Cr Cash $120,000

2. On 1 Dec 2021, the company received $10,000 from a customer for purchase of goods to be delivered in 3 batches. $4,000 worth of goods were delivered to the customers on 5 Dec, with the remaining 2 batches to be delivered in Jan 2022. The previous accountant recorded this transaction as:

DR Cash $10,000

Cr Sales Revenue $10,000

3. An inventory item costing $20,000 were damaged. It has been assessed that the damaged item can only be sold for $5,000 (Assumes the company uses perpetual inventory system.

4. Salaries accrued not paid at 31 Dec 2021 amounted to $8,000. This has yet to be recorded.

5. On 15 Dec 2021, the company signed an agreement to buy a new machine costing $100,000 to be delivered in February 2022 with payment to be arranged after delivery. No down-payment was given.

6. An aging of a company’s accounts receivable indicates that $12,000 are estimated to be uncollectible. However, this was not recorded by the previous accountant.

Analyse the above and present the necessary entries. Narrations are not required.