At December 31, 2016 the Accounts Receivable Balance of TM Manufacturer is $230,000. The Allowance for Bad Debts has a $24,000 debit balance. TM Manufacturer prepares the following aging schedule for its accounts receivable:

Age of Accounts

1-30 Days 31-60 Days 61-90 Days Over 90 Days

A.R. $75,000 $ 80,000 $35,000 $40,000

E.P.U 0.8% 4.0% 6.0% 48%

E.T.U

A.R.= Accounts Receivable, E.P.U.= estimated percent uncollectible, E.T.U= estimated total uncollectible

Calculate the E.T.U

Journalize the year end adjusting entry for bad debits on the basis of the aging schedule. Show the T-account for the allowance for Bad Debts at December 31, 2016

Show how TM Manufacturer will report its net accounts receivable on its December 31, 2016, balance sheet.