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Journalize the year-end adjusting entry for bad debts on the basis of the aging schedule

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Question

E9-19 Accounting for uncollectible accounts using the allowance method;(aging-of-receivables) and reporting receivables on the balance sheet;At December 31, 2014, the Accounts Receivable balance of GPS Technology is;$190,000. The Allowance for Bad Debts account has a $1,600 debit balance. GPS;Technology prepares the following aging schedule for its accounts receivable;Age of Accounts;Accounts Receivable 1?30 Days 31?60 Days 61?90 Days Over 90 Days;$190,000 $80,000 $60,000 $40,000 $10,000;Estimated percent uncollectible 0.4% 5.0% 6.0% 50.0%;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;2014.;2. Show how GPS Technology will report its net accounts receivable on its;December 31, 2014, balance sheet.

 

Paper#23859 | Written in 18-Jul-2015

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