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 $31,2025.$

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

Requirements

Journalize the year$-$end adjusting entry for bad debts on the basis of the aginc schedule. Show the T$-$account for the Allowance for Bad Debts at December $31,2025$

Show how Lexington Financial Software will report its net accounts receivable on its December $31,2025,$ balance sheet.

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.$)$

Show the T$-$account for the Allowance for Bad Debts at December $31,2025$

$\backslash$table$[[$Allowance for Bad Debts,$],[,,],[,,],[,,]]$

Requirement $2.$ Show how Lexington Financial Software will report its net accounts receivable on its December $31,2025,$ balance sheet Balance Sheet $($Partial$)$:

Current Assets:

Aging Schedule

$\backslash$table$[[$Accounts Receivable,Age of Accounts$],[,$Days,$31-60$ Days,$61-90$ Days,Over $90$ Days$],[$$$,75,000$$$,45,000$$$,35,000$$$,5,000],[$Estimated percent uncollectible,,$0\mathrm{.}3\%,2\mathrm{.}0\%,7\mathrm{.}0\%,54\mathrm{.}0\%$