4. Given the following information and the information in Figure 2,complete ac.

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.

Lake Co.
December 31, 2012
			Estimated Percent	Estimated Amount Needed
			Considered to be Bad	in Allowance for
		Amount	Debts Expense	Doubtful Accounts
	Not yet due	$170,000	6%
	0 - 60	8,000	10%
	61 - 180	12,000	23%
	Over six months	3,000	32%
		$193,000

Figure 3