Determine the allowance and prepare partial balance sheet. Assuming the allowance for doubtful accounts has an unadjusted credit balance of $4,500 at December 31, what is the bad debt expense for the year? Prepare the current assets section of the balance sheet for Gourdeau Co. Assume that, in addition to the receivables, it has cash of $90,000, merchandise inventory of $130,000, and prepaid insurance of $7,500.