McCarthy Corporations allowance to reduce available-for-sale securities to market has a $ 7,200 credit balance on December

Question:

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 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. Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...