At December 31, 2024, 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:

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, 2024.
2. Show how GPS Technology will report its net accounts receivable on its December 31, 2024, balance sheet.

Transcribed Image Text:

Accounts Receivable Estimated percent uncollectible 1-30 Days $ 65,000 0.4% Age of Accounts 31-60 Days $ 50,000 3.0% 61-90 Days $ 40,000 5.0% Over 90 Days $ 45,000 48.0%