Adjusting Entries and accounts 1) The company began 2021 with 350 hats which had a cost of $23 each. The company uses a periodic LIFO inventory system to cost their inventory. Employees physically counted number of hats remaining in the warehouse at the end of 2021 indicated there were:; - 700; 2) As of the fiscal year end, the company estimates that 10% of receivables will be uncollectible. 3) Records indicate that salaries for the last week of December amounted to $250 and would be paid at the end of the first week in January (a two-week pay period) 4) The company uses straight-line depreciation for all of its store fixtures and office equipment. Below is a schedule of the store fixtures and office equipment at the end of 2021. It determines that the useful life of office equipment (ID#4299) is extended to 7 years with a salvage value of $600.

FIXTURES AND EQUIPMENT (as of December 31, 2018)
ID #	Historical Cost	Estimated Useful Life	Estimated Salvage Value	Date acquired
1256	$15,000	10 years	$1,000	Jan. 1, 2014
1876	$1,500	10 years	$200	Jan. 1, 2016
4299	$20,000	5 years	$0	Jan. 1, 2018
5422	$8,300	5 years	$500	Oct. 1, 2021

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Adjusting Entries LIFO Adjustment for Inventory Using the periodic LIFO inventory system we need to ... View the full answer