ADJUSTING ENTRY

Oct 2. Advance payment of P 12, 000 for 1 yr

insurance.
• 2. Prepaid Insurance P. 12, 000
Cash P. 12, 000
to record the advanced payment for insurance
October 31. One month of the insurance was
expired
• Insurance expense P. 1, 000
• Prepaid Insurance P. 1, 000
• To record the expired insurance
Oct 02. Advanced payment for 3 months rent,
P. 15, 000.
• 02. Prepaid Rent P. 15, 000
• Cash P. 15, 000
• To record the advanced payment for rent
Oct 31. One month of the rent was expired
• Rent expense P. 5, 000
• Prepaid Rent P. 5, 000
• To record the expired rent
Oct. 03 Purchased supplies on account, P 2, 000.
• 03. Supplies P. 2, 000
• Accounts Payable P. 2, 000
• To record the purchased supplies on account
Oct 31. P. 500 worth of the supplies remains
• Supplies expense P. 1, 500
• Supplies P. 1, 500
• To record the expired supplies
Oct 09. Received advanced payment for next
month laundry service, P 15, 000.
09. Cash P. 15, 000
Unearned Laundry Revenue P. 15, 000
to record the received advanced payment
Oct 31. One month of the unrendered service
was rendered.
• 31. Unearned Laundry Revenue P. 15, 000
Laundry Revenue P. 15, 000
to record the rendered service that was previously
unrendered
Oct 03. Received advance payment of P 15, 000
for the next 3 months laundry service
• 03. Cash P. 15, 000
• Unearned Laundry Revenue P. 15, 000
• To record the received advanced payment
Oct 31. One month of the unrendered service was
already rendered
• Unearned Laundry Revenue P. 5, 000
• Laundry Revenue P. 5, 000
• To record the rendered service from previously unrendered
Oct 15. Received advanced payment of P 20, 000
for 2 months repair service
• Cash P. 20, 000
• Unearned repair revenue P. 20, 000
Oct 31. One month of the unrendered service was
already rendered
• Unearned repair revenue P. 10, 000
• Repair Revenue P. 10, 000
• To record the rendered service on the previously unrendered
to record the recognized revenue earned from Oct 15 trans.
Oct 17. Rendered laundry service on account,
P 15, 000.
• Accounts Receivable P. 15, 000
• Laundry Revenue P. 15, 000
• To record the rendered service on account
 Oct 31. P 2, 000 of the receivables cannot be
collected
• Doubtful account expense/ Bad debt expense P. 2, 000
• Allowance for doubtful account/ Allowance for bad debts P. 2, 000
• To record the bad debts

• Accounts Receivable P. 15, 000

• Less: Allowance for bad debt (P. 2, 000)
• Remaining Receivables P. 13, 000