On December 31, Taylor Corporation has an accounts receivable balance of $180,000 and an Allowance for Bad Debts balance of $150. In analyzing its individual accounts receivable, Taylor determines that accounts receivable of $100,000 are not yet past due,

$50,000 are between | and 60 days past due, $20,000 are between 61 and 120 days past due, and $10,000 are over 120 days past due. Based on past experience, Taylor estimates that it will not collect '/, percent of accounts not yet due, | percent of accounts between | and 60 days past due, 3 percent of accounts between 61 and |20 days past due, and 10 percent of accounts over 120 days past due.

Required: (1) Prepare an aging analysis to determine the amount of Taylor Corporation’s estimated uncollectible accounts at the end of the year.

(2) Using T-accounts, prepare the year-end bad debts adjustment.

(3) Show how Taylor would report its net accounts receivable on its December 31 balance sheet. TYK-1