At December 31, 2012, the Accounts receivable balance of GPS Technology is $190,000. The Allowance for doubtful accounts has an $8,600 credit balance. GPS Technology prepares the following aging schedule for its accounts receivable:

Requirements
1. Journalize the year-end adjusting entry for doubtful accounts on the basis of the aging schedule. Show the T-account for the Allowance for uncollectible accounts at December 31, 2012. 2. Show how GPS Technology will report its net Accounts receivable on its December 31, 2012 balancesheet.

Transcribed Image Text:

Age of Accounts 1-30 31-60 Over 90 61-90 Accounts receivable Days Days Days Days $60,000 5.0 % $190,000 $80,000 0.4 % $40,000 6.0 % $10,000 50.0 % Estimated percent uncollectible