Business, 05.08.2020 19:01 kayliejeancost

At December 31 , 2018 , the Accounts Receivable balance of GPC Technology is $195,000 . The Allowance for Bad Debts account has a $24,225 debit balance. GPC Technology prepares the following aging schedule for its accounts receivable: Age of accounts
1-30 31-60 61-90 Over 90 Total
Days Days Days Days Balance
Accounts Receivable $95,000 $55,000 $35,000 $10,000
Estimated percent uncollectible 0.5% 5% 8% 52%
Estimated total uncollectible

Required:
a. 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.
b. Show how Lexington Financial Software will report its net accounts receivable on its December 31, 2018, balance sheet.

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At December 31 , 2018 , the Accounts Receivable balance of GPC Technology is $195,000 . The Allowanc...