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In an audit of What2Do for the year ended 12/31/x2, you found an account titled "Other Revenue and Expense". Journal entries to this account in 20x2 were as follows: Dates Description Amount January 1, 20x2 through December 31, 20x2 Proceeds from monthly sales of scrap $5,843 January 18, 20x2 Recovery of previously written of Account Receivable from Wilshire Company $4,381 February 1, 20x2 Cash proceeds from sale of old machine with cost of $10,000 and accumulated depreciation of $8,000 as of February 1, 20x2. The machine had not been removed from the ledger. $3,500 April 8, 20x2 Refund of Property Insurance Premium for period April 1, 20x2 March 30, 20X3 $600 December 31, 20x2 Reduction of Inventory to Lower of Cost or Market ($1,800) December 31, 20x2 Lawsuit filed by terminated employee; no likelihood of litigation established ($500,000) Balance per Ledger ($487,476) Miscellaneous Revenue and (Expenses) Required: A. In the space below, provide a proposed adjusting journal entry at December 31, 20X2, for What2Do Company's Miscellaneous Revenue and Expense Account. B. What do you propose to What2Do Company regarding this account to improve financial reporting?

n an audit of What2Do for the year ended 12/31/X2, you found an account titled "Other Revenue and Expense". Journal entries to this account in 20x2 were as follows Dates Description Amount January 1, 20x2 through December 31, Proceeds from monthly sales of scrap $5,843 20x2 January 18, 20x2 Recovery of previously written of $4,381 Account Receivable from Wilshire Company February 1, 20x2 Cash proceeds from sale of old machine $3,500 with cost of $10,000 and accumulated depreciation of $8,000 as of February 1, 20x2. The machine had not been removed from the ledger. April 8, 20x2 Refund of Property Insurance Premium $600 for period April 1, 20x2 - March 30. 20X3 December 31, 20x2 Reduction of Inventory to Lower of Cost ($1,800) or Market December 31, 20x2 Lawsuit filed by terminated employee; ($500,000) no likelihood of litigation established Balance per Ledger ($487,476) Miscellaneous Revenue and (Expenses) Required: A. In the space below, provide a proposed adjusting journal entry at December 31, 20X2, for What2Do Company's Miscellaneous Revenue and Expense Account. 3. What do you propose to What2Do Company regarding this account to improve financial reporting

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