At December $31,2024,$ the Accounts Receivable balance of Advanced Automotive Technology is $$215,000.$ The Allowance for Bad Debts account has a $$9,920$ debit balance. Advanced Automotive Technology prepares the following aging schedule for its accounts receivable:

$($Click the icon to view the aging schedule.$)$

Read the requirements.

Requirement $1.$ 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 $31,2024.$

Begin by determining the target balance of Allowance for Bad Debts by using the age of each account.

$\backslash$table$[[,$Age of Accounts$],[,,1-30,31-60,61-90,$Over $90,$Total$],[,,$Days,Days,Days,Days,Balance$],[$Accounts Receivable,$$,85,000,$$$70,000,$$$55,000,5,000,],[$Estimated percent uncollectible,,$0\mathrm{.}2\%,4\mathrm{.}0\%,10\mathrm{.}0\%,54\mathrm{.}0\%,]]$

Estimated total uncollectible

Data table

$\backslash$table$[[.,$Age of Accounts$],[,$Days,$31-60$ Days,$61-90$ Days,Over $90$ Days$],[$Accounts Receivable,$$,85,000$$$,70,000$$$,55,000$$$,5,000],[$Estimated percent uncollectible,,$0\mathrm{.}2\%,4\mathrm{.}0\%,10\mathrm{.}0\%,54\mathrm{.}0\%$