At December 31, 2018, the Accounts Receivable balance of Digital Cable Company is $165,000. The Allowance for Bad Debts account has a $15,880 debit balance. Digital Cable Company prepares the following aging schedule for its accounts receivable: (Click the icon to view the aging schedule.) Read the requirements 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 Requirements Accounts Receivable $ 55,000 0.6% $ 70,000 5.0 of $ 15,000 7.0 25,000 52.0 Estimated percent uncollectible % % Estimated total uncollectible 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 Digital Cable Company will report its net accounts receivable on its December 31, 2018, balance sheet. Data Table Print Done Age of Accounts Accounts Receivable 1-30 Days 31-60 Days 61-90 Days Over 90 Days 55.000 $ 70,000 $ 15,000 $ 25,000 0.6% 5.0% 7.0% 52.0% Estimated percent uncollectible Print Done