Given the information below, and assuming the following balances: Cash, $42,000; Accounts Receivable, $173,000; Allowance for Doubtful

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 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

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...