Nevercrash Airlines has a portfolio of marketable debt securities classified as available-for-sale securities, the first of which was acquired in 2013. The aggregate cost and fair value of the securities contained in that investment portfolio for five balance sheet dates are as follows:
At each balance sheet date, determine the following:
(a) Reported value for the portfolio.
(b) Desired balance in the related valuation account and indicate whether the desired balance is a debit or a credit.
(c) Amount of adjustment required to the related valuation account and indicate whether the required adjustment to the related allowance account is a debit or credit.