At December 31,2016, the Accounts Receivable balance of GPS Technology is 180,000. The allowance for Bad Debts account has a 10,540 debit balance. GPS Technology prepares the following aging schedule for its accounts receivable.

Requirements: 1. Journalize the year -end adjusting entry for bad debts on the basis of the aging scheldule. Show the T-account for the Allowance for Bad Debts at December 31,2016

2.Show how GPS Technology will report its net accounts receivable on its December 31,2016, balance sheet

Requirement 1. Journalize the year -end adjusting entry for bad debts on the basis of the aging scheldule. Show the T-account for the Allowance for Bad Debts at December 31,2016

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

Age of Accounts

1-30 Days Accounts Receivable 90,000 Estimated percent uncollectible 0.6% Estimated total uncollectible......? 31-60 Days Accounts Receivable 55,000 Estimated percent uncollectible 5.0% Estimated total uncollectible.......? 61-90 Days Accounts Receivable $20,000 Estimated percent uncollectible 10.0% Estimated total uncollectible...? Over 90 Days Accounts Receivable 15,000 Estimated percent uncollectible 45.0% Estimated total uncollectible.....? Total Balance........Estimated total uncollectible........?