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​, 2018. 2. Show how Solar Energy Manufacturing will report its net accounts receivable on its December 31​, 2018​, balance sheet.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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​,
2018.
2.
Show how
Solar Energy Manufacturing
will report its net accounts receivable on its
December
31​,
2018​,
balance sheet.
Age of Accounts
1-30 Days
31-60 Days
61-90 Days
Over 90 Days
Accounts Receivable
80,000 $
40,000 $
50,000 $
20,000
Estimated percent uncollectible
0.5%
4.0%
9.0%
52.0%
Transcribed Image Text:Age of Accounts 1-30 Days 31-60 Days 61-90 Days Over 90 Days Accounts Receivable 80,000 $ 40,000 $ 50,000 $ 20,000 Estimated percent uncollectible 0.5% 4.0% 9.0% 52.0%
At December 31, 2018, the Accounts Receivable balance of Solar Energy Manufacturing is $190,000. The Allowance
for Bad Debts account has a $14,750 debit balance. Solar Energy Manufacturing prepares the following aging
schedule for its accounts receivable:
Transcribed Image Text:At December 31, 2018, the Accounts Receivable balance of Solar Energy Manufacturing is $190,000. The Allowance for Bad Debts account has a $14,750 debit balance. Solar Energy Manufacturing prepares the following aging schedule for its accounts receivable:
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