Given the information presented in Figure 13.13, do the following:
a. Prepare on December 31, 2021, the adjusting journal entry for Bad Debts Expense. Balances: Cash, $32,000; Accounts Receivable, $152,000; Allowance for Doubtful Accounts, $260; Merchandise Inventory, $12,000. The company uses the allowance method and the balance sheet approach.
b. Prepare a partial balance sheet on December 31, 2021, 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, 2021.

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Not yet due 0-60 61-180 Over 6 months Amount $120,000 11,000 11,000 10,000 $152,000 MASSO CO. DECEMBER 31, 2021 Estimated Percent Considered to Be Bad Debts Expense 2% 4% 21% 30% Estimated Amount Needed in Allowance for Doubtful Accounts