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At December 31, 2018, the Accounts Receivable balance of TM Manufacturer is $230,000. The Allowance for Bad Debts account has a $24,000 debit balance. TM
At December 31, 2018, the Accounts Receivable balance of TM Manufacturer is $230,000. The Allowance for Bad Debts account 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 Accounts Receivable $ 75,000 $ 80,000 4.0% $ 35,000 6.0% $ 40,000 48.0% Estimated percent uncollectible 0.8% Requirements 1. Prepare the aging schedule (6 points) 2. Journalize the year-end adjusting entry for bad debts on the basis of the aging schedule. (3points) 3. Show how TM Manufacturer will report its net accounts receivable on its December 31, 2018, balance sheet. (2 points)
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