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Comprehensive Problem 2 Part 4 and 6:

Note: You must complete parts 1, 2 and 3 before attempting to complete part 4 and part 6. Part 5 is an optional work sheet.

4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete Part 6.

Line Item Description	Amount	Amount
a. Inventory on May 31		$570,000
b. Insurance expired during the year		12,000
c. Store supplies on hand on May 31		4,000
d. Depreciation for the current year		14,000
e. Accrued salaries on May 31:
Sales salaries	$7,000
Office salaries	6,600
Total		13,600

f. The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of goods sold.

6. Journalize the adjusting entries. If an amount box does not require an entry, leave it blank. Post the adjusting entries to the attached spreadsheet you used in parts 1 and 2.

Part 7:

You must complete parts 1, 2, 3, 4 and 6 before completing part 7. Part 5 is the optional work sheet.

Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank.

Account	Debit Balances	Credit Balances
Cash	fill in the blank 1	fill in the blank 2
Accounts Receivable	fill in the blank 3	fill in the blank 4
Inventory	fill in the blank 5	fill in the blank 6
Estimated Returns Inventory	fill in the blank 7	fill in the blank 8
Prepaid Insurance	fill in the blank 9	fill in the blank 10
Store Supplies	fill in the blank 11	fill in the blank 12
Store Equipment	fill in the blank 13	fill in the blank 14
Accumulated Depreciation-Store Equipment	fill in the blank 15	fill in the blank 16
Accounts Payable	fill in the blank 17	fill in the blank 18
Salaries Payable	fill in the blank 19	fill in the blank 20
Customers Refunds Payable	fill in the blank 21	fill in the blank 22
Common Stock	fill in the blank 23	fill in the blank 24
Retained Earnings	fill in the blank 25	fill in the blank 26
Dividends	fill in the blank 27	fill in the blank 28
Sales	fill in the blank 29	fill in the blank 30
Cost of Goods Sold	fill in the blank 31	fill in the blank 32
Sales Salaries Expense	fill in the blank 33	fill in the blank 34
Advertising Expense	fill in the blank 35	fill in the blank 36
Depreciation Expense	fill in the blank 37	fill in the blank 38
Store Supplies Expense	fill in the blank 39	fill in the blank 40
Miscellaneous Selling Expense	fill in the blank 41	fill in the blank 42
Office Salaries Expense	fill in the blank 43	fill in the blank 44
Rent Expense	fill in the blank 45	fill in the blank 46
Insurance Expense	fill in the blank 47	fill in the blank 48
Miscellaneous Administrative Expense	fill in the blank 49	fill in the blank 50
Total	fill in the blank 51	fill in the blank 52