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, 2021, the adjusting journal entry for bad debts expense.
b. Prepare a partial balance sheet on December 31, 2021, 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, 2021.

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Additional Information Not yet due 0-60 61-180 Over six months Amount $150,000 10,000 9,000 4,000 $173,000 Alvie Co. December 31, 2021 Estimated Percentage Considered to Be Bad Debts Expense 2 6 20 40 Estimated Amount Needed in Allowance for Doubtful Accounts