At December 31, 2018, the Accounts Receivable balance of Lexington Financial Software is $180,000. The Allowance for Bad Debts account has a $12,925 debit balance. Lexington Financial Software prepares the following aging schedule for its accounts receivable: EE(Click the icon to view the aging schedule.) Read the reguirements. 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 Total 1-30 31-60 61-90 Over 90 Days Days Days Days Balance Accounts Receivable 75,000 $ 0.9 55,000 $ 30,000 $ 20,000 45.0 3.0 9.0 Estimated percent uncollectible % 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.) Accounts and Explanation Date 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 Lexington Financial Software will report its net accounts receivable on its December 31, 2018, balance sheet. Balance Sheet (Partial): Current Assets