Question: Given the information below, and assuming the following balances: Cash, $42,000; Accounts Receivable, $173,000; Allowance for Doubtful Accounts, $400 credit; Inventory, $12,000, a. Prepare on

Given the information below, and assuming the following balances: Cash, $42,000; Accounts Receivable, $173,000; Allowance for Doubtful Accounts, $400 credit; Inventory, $12,000,
a. Prepare on December 31, 2013, the adjusting journal entry for bad debts expense.
b. Prepare a partial on December 31, 2013, showing how net realizable value is calculated.
c. If the balance in Allowance for Doubtful Accounts were a $400 debit balance, journalize the adjusting entry for bad debts expense on December 31, 2013.
Additional Information
Alvie Co.
December 31, 2013

Estimated PercentageEstimated Amount Considered to Be BadNeeded in Allowance AmountDebts Expense for Doubtful Accounts Not yet due 0-60 61-180 Over six months 4 $150,000 10,000 9,000 000 $173,000 20 40

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