BROTH SCHEMEN E-F:8-21 Accounting for uncollectible accounts using the allowance method (aging-of-receivables) and reporting receivables on the balance sheet (Learning Objective 3) At December 31, 2024, the Accounts Receivable balance of GPS Technology is $200,000. The Allowance for Bad Debts account has a $24,110 debit balance. GPS Technology prepares the following aging schedule for its accounts receivable: Accounts Receivable Estimated percent uncollectible 1-30 Days $ 65,000 0.4% Age of Accounts 31-60 Days $ 50,000 2 Allowance CR Bal. $25,360 3.0% 61-90 Days $ 40,000 5.0% Over 90 Days $ 45,000 48.0% Requirements 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. 2. Show how GPS Technology will report its net accounts receivable on its December 31, 2024, balance sheet.

E-F:8-21 Accounting for uncollectible accounts using the allowance method (aging-of-receivables) and reporting receivables on the balance sheet (Learring Objective 3) At December 31, 2024, the Accounts Receivable balance of GPS Technology is $200,000. The Allowance for Bad Debts account has a $24,110 debit balance. GPS Technology prepares the following aging schedule for its accounts receivable: Requirements 1. Joumalize 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 2. Show how GPS Technology will report its net accounts receivable on its December 31,2024 , balance sheet. 2. Allowance CR Bal $25,360 E-F:8-21 Accounting for uncollectible accounts using the allowance method (aging-of-receivables) and reporting receivables on the balance sheet (Learring Objective 3) At December 31, 2024, the Accounts Receivable balance of GPS Technology is $200,000. The Allowance for Bad Debts account has a $24,110 debit balance. GPS Technology prepares the following aging schedule for its accounts receivable: Requirements 1. Joumalize 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 2. Show how GPS Technology will report its net accounts receivable on its December 31,2024 , balance sheet. 2. Allowance CR Bal $25,360