5/22/2020 Data Table Age of Accounts 1-30 Days 31-60 Days 61-90 Days Over 90 Days Accounts Receivable $ 70,000 $ 85,000 $ 45,000 $ 30,000 Estimated percent uncollectible 0.1 % 3.0 % 6.0 % 55.0 % 5/22/2020 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 Advanced Automotive Technology will report its net accounts receivable on its December 31, 2018, balance sheet. At December 31, 2018, the Accounts Receivable balance of Advanced Automotive Technology is $230,000. The Allowance for Bad Debts account has a $19,820 debit balance. Advanced Automotive Technology prepares the following aging schedule for its accounts receivable: (Click the icon to view the aging schedule.) Read the requirements, Bad Debts at December 31, 2018. Requirement 1. Journalize the year-end adjusting entry for bad debts on the basis of the aging schedule. Show the T-account for the Allowance Begin by determining the target balance of Allowance for Bad Debts by using the age of each account. Age of Accounts 1-30 Over 90 Total Days Balance 31-60 Days $ 85,000 3.0 % 61-90 Days $ 45,000 6.0. Accounts Receivable $ 70,000 Days 30,000 55.0% 0.1 Estimated percent uncollectible Estimated total uncollectible Joumalize the year-end adjusting entry for doubtful accounts on the basis of the aging schedule. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Dec. 31 Show the T-account for the Allowance for Bad Debts at December 31, 2018. Allowance for Bad Debts Requirement 2. Show how Advanced Automotive Technology will report its net accounts receivable on its December 31, 2018, balance sheet. Balance Sheet (Partial): Current Assets