4. Given the following information and the information in Figure 2, complete a-c.

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 $330 debit balance, journalize the adjusting entry for Bad Debts Expense on December 31, 2012.

Balances: Cash, $28,000; Accounts Receivable, $193,000; Allowance for Doubtful Accounts, $330; Merchandise Inventory, $16,000.