Adjusting Entries for the following.

1. CBCS has the following long-lived assets:

	Date of purchase	Depreciation method
Land	January 1, 2019
Buildings	January 1, 2019	Straight-line The estimated useful life of 20 years
Furniture	January 1, 2019	Straight-line The estimated useful life of 10 years
Machinery	January 1, 2020	Double-declining balance Estimated useful life 5 years
Computer	September 30, 2021	Straight-line Estimated useful life 5 years Residual value $500

Land	$880,000
Buildings	$195,000
Furniture	$33,600
Machinery	$28,000
Computer	$2,500

2. Customers must pay a $1,000 non-refundable booking deposit for a catering package provided by CBCS. An analysis of bookings during 2021 indicated that 75 deposits were received and credited to Deferred Revenue. By December 31, 2021, CBCS had provided the service and completed 25 of the 75 bookings.

All sales are done with cash and/or credit card. Cash received from the sales is counted daily and is deposited in the company’s bank account at the end of each month. Bank reconciliations are prepared on an annual basis.

3. A local business made an advance payment of $3,500 to CBCS on December 15, 2021, for an event to be held in March 2022. This amount was credited to Service Revenue at the time of receipt.

4. CBCS delivered meals worth $1,300 to a customer in October 2021 but has not received the payment all methods of contacting the customer have been exhausted and the amount has been deemed uncollectible.

Chloe has reviewed the accounts receivable balance and notes that 60% of the accounts receivable balance relates to corporate events, and the rest relates to non-corporate events. Normally CBCS collects all of its outstanding receivables. Due to the unusual economic conditions in 2021, Chloe fears this year might be different. She estimates that 10% of corporate receivables might not be collected and 15% of non-corporate receivables might not be collected.