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Part $1$

At December $31,2024,$ the Accounts Receivable balance of Alpha Company is $ $180$ comma $000.$ The Allowance for Bad Debts account has a $ $9$ comma $250$ debit balance. Alpha Company prepares the following aging schedule for its accounts$$ receivable:

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

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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

$$75,000$

$$70,000$

$$25,000$

$$10,000$

Estimated percent uncollectible

$0\mathrm{.}6$

$\%$

$5\mathrm{.}0$

$\%$

$6\mathrm{.}0$

$\%$

$49\mathrm{.}0$

$\%$

Estimated total uncollectible

Part $2$

Journalize the$$ year$-$end adjusting entry for bad debts on the basis of the aging schedule. $($Record debits$$ first, then credits. Select the explanation on the last line of the journal entry$$ table.$)$

Date

Accounts and Explanation

Debit

Credit

Dec. $31$

Part $3$

Show the$$ T$-$account for the Allowance for Bad Debts at December $31,2024.$

Allowance for Bad Debts

Part $4$

Requirement $2.$ Show how Alpha Company will report its net accounts receivable on its December $31,2024,$ balance sheet.

Balance Sheet $($Partial$)$:

Current Assets: