At December $31,2024,$ the Accounts Receivable balance of Solar Energy Manufacturing is $$175,000.$ The Allowance for Bad Debts account has a $$15,700$ debit balance. Solar Energy Manufacturing 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,$$,75,000,$$$,45,000,$$$25,000,30,000,],[$Estimated percent uncollectible,,$0\mathrm{.}6\%,,3\mathrm{.}0\%,6\mathrm{.}0\%,45\mathrm{.}0\%,],[$Estimated total uncollectible,,,,,,,$]]$

Requirements

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 $31,2024$

Show how Solar Energy Manufacturing will report its net accounts receivable on its December $31,2024,$ balance sheet.