Write journal entries for the following transactions that occurred during May and explain how each would be disclosed in the financial statement

1. The company prepaid $14,340 rent for the period May 1-October 31.

2. Sales discounts and allowances were $34,150.

3. A loan for $3,500 at 12 percent interest continued to be owed to the company by one of its employees, who made no payments related to this loan during May.

4. Depreciation expense was $13,660.

5. Customers paid $2,730 for services they will not receive until sometime in June.

6. The company purchased $172 worth of stamps and used $100 worth of them.

7. The Allowance for Doubtful Accounts was increased by $1,350, reflecting a new estimate of uncollectible accounts.