During the month of December several additional sales on account took place and a number of payments on account came in to the company but no other accounts were written off as uncollectible. On December 31, an Aging of Accounts schedule was prepared in as part of process for recording year-end bad debts expense based on aging of accounts receiving method of estimation. A summary (no names listed) of the schedule used to identify the target balance follows:

Requirement 2: calculate the target and journalize the adjusting entry

Aging of Account Receivable as of December 31

Target Accounts Receivable 1-30 Days 31-60 Days 61-90 Days Over 90 Days $120,000 Total 70,000 30,000 15,000 5,000 Estimated % Uncollectible .3% 4% 20% 25% Estimated Uncollectible $ 210

The T account for Allowance for Bad Debt is used to analyze the activity and required entry in the account ___

Allowance for Bad Debts____ Dec 71,200 4,200 Nov 30 __________3000 unadjusted bal Dec. 31. ___Please answer herer_??? adjusting entry below _______ ? target balance, Dec 31

Requirement 3:Show how Central Texas Plumbing Supply would report accounts receivable at Dec. 31:

Balance Sheet (Partial)

Current Assets:

Accounts Receivable $120,000

Less: Allowance for Bad Debts _____Please answer here_______ $114,340 (net real. value) (check number)