Part $1$ of $4$

Points: $0$ of $1$

At December $31,2024,$ the Accounts Receivable balance of Solar Energy Manufacturing is $$160,000.$ The Allowance for Bad Debts account has a $$7,635$ debit balance. Solar Energy Manufacturing prepares the following aging schedule for its accounts receivable:

$($Click the icon to view the aging schedule.$)$

Read the requirements.

Requirement $1.$ 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 $31,2024.$

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

$\backslash$table$[[,$Age of Accounts$],[,1-30,31-60,61-90,$Over $90,$Total$],[,$Days,Days,Days,Days,Balance$],[$Accounts Receivable,$$,55,000,$$$,75,000,$$$,25,000,5,000,],[$Estimated percent uncollectible,,$0\mathrm{.}7\%,,5\mathrm{.}0\%,,8\mathrm{.}0\%,55\mathrm{.}0\%,],[$Estimated total uncollectible,,,,,,,,$]]$

Data table

$\backslash$table$[[,$Age of Accounts$],[,,0$ Days,$31-60,$Days,$61-90$ Days,Over $90$ Days$],[$Accounts Receivable,$$,55,000,$$$,75,000,25,000,5,000],[$Estimated percent uncollectible,,$0\mathrm{.}7\%,,5\mathrm{.}0\%,8\mathrm{.}0\%,55\mathrm{.}0\%$