Applying the allowance method (aging-of-receivables) to account for uncollectibles Surf and Sun had the following balances at December 31, 2024, before the year-end adjustments:

Requirements 

1. Journalize Surf and Sun’s entry to record bad debts expense for 2024 using the aging-of-receivables method.
2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts.

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Accounts Receivable 81,000 The aging of accounts receivable yields the following data: Accounts Receivable Estimated percent uncollectible 0-60 Days $ 78,000 Allowance for Bad Debts 2,063 X 2% Age of Accounts Receivable Over 60 Days $ 3,000 X 23% Total Receivables $ 81,000