Nancy Howe, your staff assistant on the April 30, 20X2, audit of Wilcox Company, was transferred to another audit engagement before she could complete the audit of unrecorded accounts payable. Her working paper, which you have reviewed and are satisfied is complete, appears below. Wilcox Company Unrecorded Accounts Payable April 30, 20X2 M-1-1 Invoice Date Amount Vendor and Description Hill & Harper-unpaid legal fees at Apr. 30, X2 (see lawyer's letter at M-4) $ 1,000y Apr.1,x2 Drew Insurance Agency-unpaid premium at year-end on fire insurance for period Apr. 1, X2- Mar. 31, X3 (see insurance broker letter at J-1-1). Payment made on May 7, 20x2. 1,800y Apr.30, X2 Mays and Sage, Stockbrokers-advice for 100 shares of Madison Ltd. common stock (settlement date May 7, X2) 2,125y Lane Company-shipment received Apr. 30, X2 per receiver no. 3361 and included in Apr. 30, X2, physical inventory; invoice not yet received (amount is per purchase order) 5,863y 10,788 $ y-Examined document described. In my opinion, the $10,788 adjustment includes all material unrecorded accounts payable. N.A.H. May 29, X2 Prepare a proposed adjusting journal entry for the unrecorded accounts payable of Wilcox Company at April 30, 20X2. The amounts are material. (Do not deal with income taxes.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate computations.) X Answer is complete but not entirely correct. No Date General Journal Debit Credit 1 April 30, 20X2 Marketable securities Cost of goods sold Unexpired insurance 2,125 5,863 1,750 X Insurance expense 50 Professional fees expense 1,000 Accounts payable 10,788