The fiscal year-end unadjusted trial balance for Collins Company is found on the trial balance tab. Collins Company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: depreciation expense—store equipment, sales salaries expense, rent expense—selling space, store supplies expense, advertising expense. It categorizes the remaining expenses as general and administrative. Descriptions of items that require adjusting entries on January 31 follow.
A) Store supplies still available at fiscal year-end amount to $2,950.
B) Expired insurance, an administrative expense, for the fiscal year is $1,880.
C) Depreciation expense on store equipment, a selling expense, is $6,300 for the fiscal year.
D) To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,560 of inventory is still available at fiscal year-end.

Missing information:

Cash1,000  

Merchandise inventory12,500  

Store supplies5,800  

Prepaid insurance2,400  

Store equipment42,900  

Accumulated depreciation - Store equip.  15,250

Accounts payable  10,000

Common stock  5,000

Dividends2,200  

Retained earnings  27,000

Sales  111,950

Sales discounts2,000  

Sales returns and allowances2,200  

Cost of goods sold38,400  

Salaries expense35,000  

Rent expense15,000  

Advertising expense9,800  

Total169,200  169,200

the closing entries should be:

Dr Sales revenues 107,750

    Cr Income summary 107,750

Dr Income summary 110,270

    Cr Cost of goods sold 39,340

    Cr Salaries expense 35,000

    Cr Rent expense 15,000

    Cr Advertising expense $9,800

    Cr Supplies expense 2,950

    Cr Insurance expense 1,880

    Cr Depreciation expense 6,300

Dr Retained earnings 2,520

    Cr Income summary 2,520

Dr Retained earnings 2,200

    Cr Dividends 2,200

Explanation:

A) Store supplies still available at fiscal year-end amount to $2,950.

Dr Supplies expense 2,950

    Cr Supplies 2,950

B) Expired insurance, an administrative expense, for the fiscal year is $1,880.

Dr Insurance expense 1,880

    Cr Prepaid insurance 1,880

C) Depreciation expense on store equipment, a selling expense, is $6,300 for the fiscal year.

Dr Depreciation expense 6,300

    Cr Accumulated depreciation - Store equip. 6,300

D) To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,560 of inventory is still available at fiscal year-end.

Dr Shrinkage expense or COGS (I prefer to use COGS) 940

    Cr Merchandise inventory 940

the adjusted income statement:

Revenues:

Cost of goods sold                                             ($39,340)

Gross profit                                                                   $68,410

Operating expenses:

Net loss                                                                        ($2,520)

eds? ederal government or feds

answer; (a) calling people who have not shown interest in the product and asking them to buy it;