Problem 3-10 Presented below is the December 31 trial balance of Bridgeport Boutique BRIDGEPORT BOUTIQUE TRIAL BALANCE DECEMBER 31 Credit Debit $20,700 Cash Accounts Receivable 38,200 $632 Allowance for Doubtful Accounts Inventory, December 31 84,250 Prepaid Insurance 6,240 91,000 Equipment Accumulated Depreciation-Equipment 32,420 Notes Payable 25,520 Common Stock 077, Retained Earnings 10,220 Sales Revenue 730,951 Cost of Goods Sold 502,400 Salaries and Wages Expense (sales) 55,500 Advertising Expense 6,920 Salaries and Wages Expense (administrative) 67,040 Supplies Expense 4,570 $876,820 $876,820 (a) Construct T-accounts and enter the balances shown. (b) Prepare adjusting journal entries for the following 1. Bad debt expense is estimated to be $1,493. 2. Equipment is depreciated based on a 7-year life (no salvage value). 3. Insurance expired during the year $2,784. 4. Interest accrued on notes payable $3,687 5. Sales salaries and wages earned but not paid $2,240. 6. Advertising paid in advance $632 7. Office supplies on hand $1,460, charged to Supplies Expense when purchased. (c) Post to the T-accounts (d) Prepare closing entries. (e) Post the closing entries