07 Jan Adjusting EntriesThe following accounts were taken
Adjusting EntriesThe following accounts were taken from the trial balance of Cristy Company as of December 31, 2008:Sales$90,000Interest Revenue5,000Equipment46,000Accumulated DepreciationEquipment12,000Inventory20,000Advertising Expense2,000Selling Expense6,000Interest Expense1,000Given the information below, make the necessary adjusting entries.(a) The equipment has an estimated useful life of nine years and a salvage value of $1,000. Depreciation is calculated using the straight-line method.(b) Of selling expense, $2,500 has been paid in advance.(c) Interest of $750 has accrued on notes receivable.(d) Of advertising expense, $620 was incorrectly debited to selling expense.