At December $31,2024,$ the Accounts Receivable balance of Alpha Company is $ $195$ comma $000.$ The Allowance for Bad Debts account has a $ $4$ comma $680$ debit balance. Alpha Company prepares the following aging schedule for its accounts$$ receivable:

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Part $1$

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.

Age of Accounts

$1-30$

$31-60$

$61-90$

Over $90$

Total

Days

Days

Days

Days

Balance

Accounts Receivable

$$80,000$

$$75,000$

$$35,000$

$$5,000$

Estimated percent uncollectible

$0\mathrm{.}6$

$\%$

$2\mathrm{.}0$

$\%$

$7\mathrm{.}0$

$\%$

$45\mathrm{.}0$

$\%$

Estimated total uncollectible

Part $2$

Journalize the$$ year$-$end adjusting entry for bad debts on the basis of the aging schedule.