(L.OBJ. 3, 5) Accounting for uncollectible accounts using the allowance method and repor...

(L.OBJ. 3, 5) Accounting for uncollectible accounts using the allowance method and reporting receivables on the balance sheet [15-30 min]

At December 31, 2012, the Accounts receivable balance of Solar Energy Manufacturing is $170,000. The Allowance for doubtful accounts has a $10,100 credit balance. Solar Energy Manufacturing prepares the following aging schedule for its accounts receivable:

Requirements

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 Solar Energy Manufacturing will report Accounts receivable on its December 31, 2012, balance sheet.