Case 2 At November 30, 2015, the accounts of Clayco Company included the following: Accounts Receivable $141,000 Allowance for Bad Debts (credit balance) $3,400 During the last quarter of 2015, Clayco completed the following selected transactions: Dec. 28 Wrote off accounts receivable as uncollectible: Tate Co. $1,600; Baker LLC $1,300; Roach Inc. $300 Dec. 31 Recorded bad debts expense based on the aging of accounts receivable, as follows: Age of Accounts Accounts Receivable 1-30 days 31-60 61-90 days Over 90 days $161,000 $99,000 $42,000 $15,000 $5,000 Estimated % uncollectible 0.2% 2% 20% 25% Requirement: 1. Journalize the December transactions. 2. Open the Allowance for Bad Debts T-account, and post the entries affecting that account. Keep a running balance. 3. Show how Clayco should report net accounts receivable on its December 31, 2015 balance sheet.