E9-19 Accounting for uncollectible accounts using the allowance method (aging-of-receivables) and reporting receivables on the balance sheet.

At December 31, 2014, the Accounts Receivable balance of GPS Technology is $190,000. The Allowance for Bad Debits has a $1,600 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 aging schedule. Show the T-accounts for the Allowance for Bad Debts on December 31, 2014.

2. Show how GPS Technology will report its net accounts receivable on its December 31, 2014, balance sheet.

E9-19 Accounting for uncollectible accounts using the allowance method (aging-of-receivables) and reporting receivables on the balance sheet At December 31, 2014, the Accounts Receivable balance of GPS Technology is $190,000. The Allowance for Bad Debts account has a $1,600 debit balance. GPS Technology prepares the following aging schedule for its accounts receivable: Age of Accounts Accounts Receivable $190,000 Estimated percent uncollectible Over 90 Days $10,000 50.0% 1-30 Days 31-60 Days 61-90 Days $60,000 $80,000-50% 5.0% $40,000 0.4% 6.0% 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, 2014. 2. Show how GPS Technology will report its net accounts receivable on its December 31, 2014, balance sheet