Acc205 Principles of Accounting I: E8-15 At December 31, 2012, the Accounts receivable

Acc205 Principles of Accounting I

E8-15 Accounting for uncollectible accounts using the allowance method and reporting receivables on the balance sheet.
At December 31, 2012, the Accounts receivable balance of GPS Technology is $190,000. The Allowance for doubtful accounts has an $8,600 credit balance. GPS Technology prepares the following aging schedule for its accounts receivable:
Age of Accounts
1-30 Days 31-60 Days 61-90 Days Over 90 Days
Accounts Receivable 190,000 80,000 60,000 40,000 10,000
Estimated percent uncollectible 0.4% 5.0% 6.0% 50.0%

1. Journalize the year-end adjusting entry for doubtful accounts on the basis of the aging schedule, Show the T-account for the Allowance for uncollectible accounts at December 31, 2012.
2. Show how GPS Technology will report its net Accounts receivable on its December 31, 2012 balance sheet.
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