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At December 31, 2018, the Accounts Receivable balance of Solar Energy Manufacturing is $200,000. The Allowance for Bad Debts account has a $16,720 debit balance. Solar Energy Manufacturing prepares the following aging schedule for its accounts receivable: E: (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, 2018. Begin by determining the target balance of Allowance for Bad Debts by using the age of each account i Requirements Age of Accounts 1-30 31-60 61-90 Over 90 Total Days Days Days Days Balance 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 Accounts Receivable $ 90,000 $60,000 $20,000 $ 30,000 31, 2018 Estimated percent uncollectible 0.8% 4.0% 6.0% 45.0 % 2. Show how Solar Energy Manufacturing will report its net accounts receivable on its December 31, 2018, balance sheet. Estimated total uncollectible Print Done i Data Table X Age of Accounts Accounts Receivable Estimated percent uncollectible 1-30 Days $ 90,000 0.8% 31-60 Days $ 60,000 4.0% 61-90 Days $ 20,000 6.0% Over 90 Days $ 30,000 45.0 % Print Done Enter any number in the edit fields and then click Check Answer. 3 parts remaining Clear All CheckStep by Step Solution
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