Given the information presented in Figure 13.12, do the following:
a. Prepare on December 31, 2015, the adjusting journal entry for Bad Debts Expense. Balances: Cash, $26,000; Accounts Receivable, $215,000; Allowance for Doubtful Accounts, $250; Merchandise Inventory, $15,000.
b. Prepare a partial balance sheet on December 31, 2015, showing how net realizable value is calculated.
c. If the balance in the Allowance for Doubtful Accounts were a $250 debit balance, journalize the adjusting entry for Bad Debts Expense on December 31, 2015.

BARNEY Co. DECEMBER 31, 2015 Estimated Percent Conside red to Be Bad Debts Expense 3% 796 16% 37% Estimated Amount Needed in Allowance for Doubtful Accounts Not yet due 0-60 61-180 Over 6 months Amount $180,000 14,000 12,000 9,000 $215,000