Question

Prepare the following adjusting entries at August 31 for Walgreens. (a) Interest on notes payable of $286 is accrued. (b) Services performed but unbilled total $1,314. (c) Salaries and wages earned by employees of $767 have not been recorded. (d) Bad debt expense for year is $876.

Answer 1

Answer and Explanation:

The adjusting entries are as follows:

a. Interest Expense $286

To Interest Payable $286

(Being the interest expense is recorded)

b. Accounts Receivable $1,314

To Service Revenue $1,314

(Being the service performed but unbilled is recorded)

c. Wages and Salary Expense $767

To Salary and Wages Payable $767

(Being wages and salary expense is recorded)

d Bad Debt Expense $876

To Allowance for Doubtful Accounts $876

(Being the bad debt expense is recorded)