• Hack Consulting performs systems consulting and sells software. It began operations in December 2021. Prepare journal entries for all the following transactions in parts A, and B, omitting explanations:

Part A: The business completed the following transactions during the month December 2021:

Dec 3 Purchased computer on account, $2,000. The computer is expected to remain in service for 3 years.

Dec 5 Received $8,200 in advance for client services to be performed in the future.

Dec 9 Sold inventory costing $6,200 for $8,525 (on account with terms 2/10, n/30).

Dec 30 Collected from customer (Dec 9) balance due.

Part B: At December 31, the business prepares adjusting entries for the following transactions:

1. Earned $1200 of the service revenue collected in advance on December 5 (from part A).
2. The administrative assistant worked the last 2 weeks in December and is owed $885 in wages to be paid January 5 (ignore payroll taxes).
3. Record bad debt expense for estimated uncollectible accounts, $5000