Question & Answer: Journalize the adjusting entries and prepare an 10 column adjusted trial balance (Unadjusted Trial Balance- Adjustments- Adjustmed Trail…..

PAW PAW RETAIL Unadjusted Trial Balance December 31, 2016 Account O 101 AcCOunt ue Dabit P 80,000 41,000 Accounts Receivable Allowanoe for Doubtful Accounts Merchandise Inventory Prepaid Rent Expensc Prepaid Insurance Expense Store Supplies DeliveryE Accumulated Depreciation Delivery Equipment Store Equipment Accumulated Depreciation Store Equipment Accounts Payable Notes Payable (due on September 30, 2018) P 1,200 142 143 145 36,200 30,000 40,000 13,300 520,000 58,500 85,000 9,500 17,300 200,000 301 401 Chase Marshall, Capital Chase Marshall, Drawing Sales Revenue Sales Returns and Allowances Sales Discount 50,000 1,516,500 Salaries Expense (60% distribution; 4096 administrative) Utilities Expense (7096 distribution; 30% administrative) Delivery Expense Taxes and Licenses Expense Miscclaneous Expenses Interest Income Interest Expense TOTAL 21,200 9,500 T26,000 372,000 104,000 8,100 65,000 11,900 602 701 5,000 8,000 P2,222,200 P P2,222,200 1. Unrecorded interest on notes payable of P5,000 is due and remains unpaid as at year-end 2016. 2. Of the reported Prepaid Rent Expense, one-fourth has expired as at year-end 2016 3. Store supplies unused as at year-end 2016 amounted to P3,850 4. Doubtful account is estimated at 5% of outstanding accounts receivable. 5, Delivery equip ent has estimated salvage value equal to 10% of cost and useful life of six years. 6. Store equipment has estimated salvage value of P10,000 and useful life of eight years. 7. Merchandise inventory at year-end, based on physical count, is 41,700.