At December 31, 2024, the Accounts Receivable balance of Advanced Automotive Technology is $190,000. The Allowance for Bad Debts account has a $11,800 debit balance. Advanced Automotive Technology 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, 2024 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 Accounts Receivable Days 80,000 0.5 % Balance 190000 $ Days $ 50,000 7.0 % $ Days $ 45,000 5.0 % 2250 15,000 Estimated percent uncollectible 51.0% 400 3500 7650 13800 Estimated total uncollectible Journalize the year-end adjusting entry for bad debts 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 Debit Credit Dec. 31 Accounts and Explanation Bad Debts Expense Allowance for Bad Debts 25600 25600 Recorded bad debts expense for the period. Show the T-account for the Allowance for Bad Debts at December 31, 2024. Allowance for Bad Debts Adj. Requirement 2. Show how Advanced Automotive Technology will report its net accounts receivable on its December 31, 2024, balance sheet. Balance Sheet (Partial): Current Assets Accounts Receivable Less: Allowance for Bad Debts