McCarthy Corporation s allowance to reduce available for sale securities to market has
McCarthy Corporation’s allowance to reduce available-for-sale securities to market has a $ 7,200 credit balance on December 31, 2012, before the lower-of-cost-or-market adjustment. The cost and market value of the available-for-sale portfolio at December 31, 2012 are $ 120,000 and $ 117,000, respectively.
Required:
Prepare the adjusting entry, if any, to adjust the allowance at year-end.
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