[rimmel]

This is the question I have to answer. Some of the year-end trial balance figures for Soft Soap Co. at December 31 follow:

Debit Credit
Accounts Receivable 90 000
Allowance for Doubtful Accounts 30
Supplies 1400
Equipment 29 000
Accumulated Depreciation-Equipment 5800
Bank Loan 10 000
Salaries Expense 80 000
Interest Expense 1 200

Prepare the adjusting enteries using the following info:

The age analysis indicates that a balance of $900 is required to allow for bad debts.
Debit Credit
This is my answer: Dec.31 Bad Debts Expense 930
Allowance for Doubtful Acc. 930

I don't if it's right. I was assuming that since the balance in the trial balance was $30 I would add the $900.

Next: On December 31, supplies on hand are valued at $500. In the trial balance it says 1400, so would that amount decrease by 500 and the new balance would be 900 or is the new balance 500?

Next: Equipment Depreciates 20% a year, using the declining balance method. In the trial balance equipment is 29 000 and accumulated depreciation - equipment is 5800, so would the new amount be 4640.

Next: 600 interest is owed on the bank loan.On the trial balance is 1200, would that increase by 600 and become 1800. Or is the new balance 600.