Individually you are to develop a 1 – 2 page, doublespaced paper for each issue(s) you are researching. Each paper must: State the identified accounting issue Identify the accounting rule(s) that pertain(s) to the issue(s) Explain in your own words the accounting rule(s) and treatment of the issue REQUIRED: Use the information provided below to create all adjusting and correcting journal entries needed to assure that Aguamaint’s financial statements will be in accordance with U.S. GAAP. Documentation for each journal entry should include a detailed explanation and all necessary calculations. YOUR QUESTIONS AND CLIENT RESPONSES 1. Are all receivables collectible? Do you require an allowance for doubtful accounts? Collection of the receivables will be no problem. We know all the customers with whom we have a contract and we have reviewed each of the accounts at yearend for any potential problems. Everyone has paid on time thus far. 2. Are any supplies still unused at yearend? If so, did you take a physical inventory of them? There is usually a quantity of shop supplies on hand. Also, the quantities are fairly stable over time. We took an inventory on January 2. I computed the cost of the items from the latest invoices and derived an amount of $5,190.