Given the information presented in Figure 13.13, do the following:

a. Prepare on December 31, 2012, the adjusting journal entry for Bad Debts Expense.
b. Prepare a partial balance sheet on December 31, 2012, showing how net realizable value is calculated.
c. If the balance in the Allowance for Doubtful Accounts were a $260 debit balance, journalize the adjusting entry for Bad Debts Expense on December 31, 2012.
Balances: Cash, $25,000; Accounts Receivable, $191,000; Allowance for Doubtful Accounts, $260; Inventory,$11,000.

LAKE CO DECEMBER 31, 2012 Estimated Percent Estimated Amount Needed Considered to Be Bad in Allowance for Doubtful Accounts Amount Debts Expense Not yet due 0-60 61-180 Over 6 months $160,000 12,000 13,000 6,000 $191,000 4% 9% 18% 33%