At December 31, 2018, the Accounts Receivable balance of GPS Technology is $200,000. The Allowance for Bad

Question:

At December 31, 2018, the Accounts Receivable balance of GPS Technology is $200,000. The Allowance for Bad Debts account has a $24,110 debit balance. GPS Technology prepares the following for its accounts receivable:

Age of Accounts 61-90 Days Over 90 Days 1-30 Days 31-60 Days $ 65,000 Accounts Receivable $ 50,000 $ 45,000 $ 40,000 Est

Requirements
1. Journalize the year-end adjusting entry for bad debts on the basis of the aging schedule. Show the T-account for the Allowance for Bad Debts at December 31, 2018.
2. Show how GPS Technology will report its net accounts receivable on its December 31, 2018, balance sheet.

Aging Schedule
Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally...