Please explain your answer. Thank you! Learning Objective 3 E8-20 Accounting for uncollectible accounts...
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Learning Objective 3 E8-20 Accounting for uncollectible accounts using the allowance method (aging-of-receivables) and reporting receivables on the balance sheet At December 31, 2018, the Accounts Receivable balance of GPS Technology is $200,000. The Allowance for Bad Debts account has a $24,110 debit balance. GPS Technology prepares the following aging schedule for its accounts receivable: 2. Allowance CR Bal. $25,360 Age of Accounts 31-60 Days 6190 Days Over 90 Days 1-30 Days Accounts Receivable $ 65,000 0.4% $50,000 3.0% $40,000 5.0% $ 45,000 48.0% Estimated percent uncollectible 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, 2018. 2. Show how GPS Technology will report its net accounts receivable on its December 31, 2018, balance sheet
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