At December 31, 2008, the Accounts Receivable balance of Easy Card is \(\$ 300,000\). The Allowance for Doubtful Accounts has a \(\$ 8,900\) credit balance. Easy Card prepares the following aging schedule for its accounts receivable:

Requirements 

1. Journalize the year-end adjusting entry for doubtful accounts on the basis of the aging schedule. Show the T-account for the Allowance at December 31, 2008.

2. Show how Easy Card will report Accounts Receivable on its December 31, 2008 balance sheet. 

Transcribed Image Text:

Age of Accounts 1-30 31-60 61-90 Over 90 Accounts Receivable Days Days Days Days $300,000........ $140,000 $80,000 $70,000 $10,000 Estimated percent uncollectible 0.5% 2.0% 6.0% 50%