Terracotta, Inc. reported the following accounts and amounts (in millions) in its financial statements for the year ended November 30, 2013. 70 70 Accounts Payable $ 780 Accounts Receivable 730 Accumulated Amortization 510 Accumulated Depreciation 850 Allowance for Doubtful Accounts Cash and Cash Equivalents 890 Equipment 5,555 Income Taxes Payable Notes Payable (long-term) 2,100 Notes Payable (short-term) Notes Receivable (long-term) 270 Prepaid Rent 330 Retained Earnings 7,530 Service Revenue 510 Short-term Investments 2,940 Software 665 Unearned Revenue 840 45 Prepare the current assets section of its balance sheet. The Allowance for Doubtful Accounts relates entirely to Accounts Receivable. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Prepare the current assets section of its balance sheet. The Allowance for Doubtful Accounts relates entirely to Accounts Receivable. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) TERRACOTTA, INC. Partial Balance Sheet As of November 30, 2013 (in millions of dollars) Assets Current Assets: Cash and Cash Equivalents Short-term Investments Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, net of Allowance Prepaid Rent Total Current Assets $ 0 2 On December 31, 2014, Extreme Fitness has adjusted balances of $990,000 in Accounts Receivable and $93,000 in Allowance for Doubtful Accounts. On January 2, 2015, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $29,000. a. What amount would the company report as its net accounts receivable on December 31, 2014? Net Accounts Receivable $ 897,000 b. Prepare the journal entry to write off the accounts on January 2, 2015. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 2 Journal entry worksheet