STEP $2$: Adjusting Entries $(26$ Marks$)$

Complete the following work on the tab called STEP $2$ of the Answer Sheet. Using the following Trial Balance as of March $30,20--,$ prepare the adjusting entries using the following Trial Balance and the Additional Information Below it$.$ The company has decided to have a year$-$end of March $31$ each year. Please show any rough work for your calculations There is a spot to the right of the journal paper on this same tab $($STEF $2).$ If you prefer to do the rough work by hand... Feel free to upload any images to this spreadsheet or submit them separately.

$\backslash$table$[[$Electric Skateboard Partnership$],[\backslash$table$[[$Trial Balance$]]],[$March $30,20-],[$ACCOUNTS$,$DEBIT,CREDIT$],[$Cash$,$$$48,300\mathrm{.}00,],[$AR $-$ Canada Skateboarding Inc,$8,400\mathrm{.}00,],[$Notes Receivable $-,2,500\mathrm{.}00,],[$Supplies$,5,000\mathrm{.}00,],[$Merchandise Inventory,$28,900\mathrm{.}00,],[$Equipment$,18,000\mathrm{.}00,],[$AP $-$ KK Skates,,$$9,000\mathrm{.}00],[$Unearned Revenue,,$6,000\mathrm{.}00],[$N$.$ Johnson, Capital,,$46,000\mathrm{.}00],[$A$.$ Hassan, Capital,,$46,000\mathrm{.}00],[$N$.$ Johnson, Drawings,$1,000\mathrm{.}00,],[$A$.$ Hassan, Drawings,$0\mathrm{.}00,],[$Sales$,,16,300\mathrm{.}00],[$Sales Returns and Allowances,$600\mathrm{.}00,],[$COGS$,10,600\mathrm{.}00,],[$Totals$,$$$123,300\mathrm{.}00,$$$123,300\mathrm{.}00]]$

An inventory count revealed that $$2000$ of supplies are left in the inventory of supplies.

$$2000$ of the unearned revenue is earned.

The company uses the Declining Balance Method to Amortize the equipment. They use a rate of $20\%.($Don$\text{'}$t forget to prorate, the biz opened on Jan $1)$

They need to accrue the interest on the Note Receivable.

They will use the $\%$ of Sales $($use Sales, not Net Sales$)$ method to estimate the bad debts for the following year. They will assume that $3\%$ will be uncollectable based on some research they have done in the area.