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The listing below represents an excerpt of the unadjusted trial balance for The Drake Hotel as at December $31,2018.$ The business uses a perpetual inventory system.

$\backslash$table$[[$Account Name,Debit,Credit$],[$Cash$,4000,],[$Accounts Receivable,$46000,],[$Allowance for Doubtful Accounts,,$720],[$Inventory$,55000,],[$Prepaid Insurance,$2760,],[$Prepaid Rent,$7200,],[$Property$,$ Plant & Equipment,$98000,],[$Accumulated Depreciation $($PP&E$),,13600],[$Accounts Payable,,$10930],[$Bonds Payable,,$50000],[$Unearned Rent Revenue,,$7200],[$Common Stock,,$100000],[$Retained Earnings,,$51600],[$Sales$,,7216000],[$Rental Revenue,,$720000],[$Cost of Goods Sold,$2000,],[$Salaries & Wages,$2890,],[$Interest Expense,,$],[$Warehouse Rent Expense,,$]]$

Instructions

Prepare all adjusting entries in general journal form using the information below. Be sure to show your calculations and descriptions to obtain full marks. @ $3=12)$

a$.$ On November $1,2018,$ Riri, the bookkeeper, received $$7200$ rent from a lessee for an $18$ month lease beginning on that date. She credited Unearned Rental Revenue for the full amount. Record the adjustment required on December $31,2018$ for the $2$ months of earned revenue.

b$.$ Riri estimates that $4\%$ of the Accounts Receivable balances on December ${31}^{st}$ will become uncollectible. Record the adjustment to the Allowance account required on December ${31}^{st}$ to reflect this.

c$.$ A physical count of inventory was completed on December ${31}^{st}$ and showed only $$54000$ on hand. Record the adjusting entry using the Cost of Goods Sold account.

d$.$ The Prepaid Insurance account represents a $3-$year term, taken out on April $1,2018.$ Record the entry to expense the portion of the policy which has expired.

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