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At December 31, 2018, the Accounts Receivable balance of Solar Energy Manufacturing is $225,000. The Allowance for Bad Debts account has a $19,610 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, 2018. Begin by determining the target balance of Allowance for Bad Debts by using the age of each account. Data table Age of Accounts 1-30 31-60 61-90 Over 90 Total Days Days Days Days Balance Age of Accounts Accounts Receivable $ $ 70,000 0.3 % $ 75,000 5.0 % $ 50,000 8.0 % 30,000 46.0 % Estimated percent uncollectible Accounts Receivable 1-30 Days 31-60 Days 61-90 Days Over 90 Days $ 70.000 $ 75,000 $ 50,000 $ 30,000 0.3% 5.0% 8.0% Estimated total uncollectible Estimated percent uncollectible 46.0% Requirements Print Done 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 2. Show how Solar Energy Manufacturing will report its net accounts receivable on its December 31, 2018, balance sheet. Clear all Drint Done

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