Age of Accounts Total Balance $380,000 Estimated uncollectible 1-30 Days $150,000 0.4 % 31-60 Days $110,000 3.0 % 61-90 Days $80,000 Over 90 Days $40,000 10.0 % 60.0 % At December 31, 2014, before any year-end adjustments, the Accounts Receivable balance of MJT Technology is $380,000. The Allowance for Doubtful Accounts has a $28,700 credit balance. MJT Technology prepares the following aging schedule for Accounts Receivable: Click the icon to view the aging schedule.) Requirements 1. Based on the aging of Accounts Receivable, is the unadjusted balance of the allowance account adequate? 2. Make the entry required by the aging schedule. 3. Show how MJT Technology will report Accounts Receivable on its December 31 balance sheet. Before we can assess whether the current balance of the allowance account is adequate, we first have to calculate a revised allowance for doubtful accounts amount. (Round to the nearest dollar.) Allowance for Doubtful Accounts: Credit balance needed 1-30 31-60 61-90 Over 90 Subtotal Less: Unadjusted balance Adjusting entry amount The credit balance at December 31 in Allowance for Doubtful Accounts should be $ . The current balance is $ Requirement 2. Make the entry required by the aging schedule. (Record debits first, then credits. Exclude explanations from any journal entries.) First, prepare the journal entry using the adjusting entry amount we calculated in the first step. Journal Entry Date Accounts Debit Credit Dec 31 Requirement 3. Show how MJT Technology will report Accounts Receivable on its December 31 balance sheet. There are two generally accepted methods to present receivables on the balance sheet. Use the method used to present receivables on the balance sheet shows the Allowance for Doubtful Accounts on a line of its own. Balance Sheet (Partial): Less