The december 31, 2015, balance sheet of maria's tennis shop, inc., showed current assets of $1,205 and current liabilities of $965. the december 31, 2016, balance sheet showed current assets of $1,420 and current liabilities of $1,095. what was the company's 2016 change in net working capital, or nwc? (do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) change in net working capital

Net working capital = total current assets - total current liabilities

Net working capital for 2015  = 1,205 -965 = 240

Net working capital in 2015 = $240

Net working capital for 2016 = 1,420-1,095 = 325

Net working capital in 2016 = $325

Change in working capital for 2016 = Net working capital in 2016 - Net working capital in 2015

Change in working capital for 2016 = 325 -240 = 85

Change in working capital for 2016 = $85

1. Dr Bad debts expense$15,900

Cr Allowance for Doubtful Accounts $15,900

2. DrBad debts expense$37,080

C Allowance for Doubtful Accounts $37,080

3. Dr Bad debts expense$18,240

Cr Allowance for Doubtful Accounts$18,240

Preparation of the adjusting entry to record bad debts expense

1. Dr Bad debts expense$15,900

Cr Allowance for Doubtful Accounts $15,900

(318,000*5%)

2. DrBad debts expense$37,080

C Allowance for Doubtful Accounts $37,080

[(918000+318,000)*3%]

3. Dr Bad debts expense$18,240

Cr Allowance for Doubtful Accounts $18,240

[(143,000*8%) + 6800]