At

December

31

,

2018

,

the Accounts Receivable balance of

CVM Manufacture

is

$ 220 comma 000

.

The Allowance for Bad Debts account has a

$ 25 comma 725

debit balance.

CVM Manufacture

prepares the following aging schedule for its accounts receivable:

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(Click the icon to view the aging schedule.)Read the requirements

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.

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 for Bad Debts at

December

31

,

2018

.

Begin by determining the target balance of Allowance for Bad Debts by using the age of each account.

		Age of Accounts
		1-30		31-60		61-90		Over 90		Total
		Days		Days		Days		Days		Balance
Accounts Receivable		$75,000		$55,000		$50,000		$40,000
Estimated percent uncollectible		0.7	%	2.0	%	8.0	%	54.0	%
Estimated total uncollectible

Journalize 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

CVM Manufacture

will report its net accounts receivable on its

December

31

,

2018

,

balance sheet.

Balance Sheet (Partial):
Current Assets:

Choose from any list or enter any number in the input fields and then continue to the next ques

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 CVM Manufacture

will report its net accounts receivable on its

December

31

,

2018

,

balance sheet

Data Table

		Age of Accounts
		1-30 Days		31-60 Days		61-90 Days		Over 90 Days
Accounts Receivable		$75,000		$55,000		$50,000		$40,000
Estimated percent uncollectible		0.7 %		2.0 %		8.0 %		54.0 %