Reference no: EM132782047

On December 31, 20X0, adjusting information for Emma Lavin Limited is as follows:

1. One of the company's customers declared bankruptcy on December 31 20X0. It is now certain that the $11,000 that this customer owes will never be collected. This important fact has never been recorded. In addition, The Company estimates Bad Debt Expense to be 2.0% of Accounts Receivable on the year-end Balance. The Accounts Receivable Balance as at 31/12/X0 before the write-off is $1,010,000, and the allowance for Doubtful Accounts is $13,000.
2. The Depreciation Expense on the Equipment is $2,000.
3. Employees' salaries earned but unpaid and unrecorded and unpaid $6,000.
4. Unearned Fees Revenue balance includes $150,500 that has been earned.
5. Interest of $2,500 has accrued on notes payable.

Required:

Question 1: Prepare the adjusting entry for each item.

Question 2: Prepare the reversing entry for each item where appropriate.