How Lexington Financial Software report accounts receivables

Reference no: EM131819371

Question: Accounting for uncollectible accounts using the allowance method (aging-of-receivables) and reporting receivables on the balance sheet At December 31, 2016, the Accounts Receivable balance of Lexington Financial Software is $205,000. The Allowance for Bad Debts account has a $16,530 debit balance. Lexington Financial Software prepares the following aging schedule for its accounts receivable:

Requirements: 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, 2016.

2. Show how Lexington Financial Software will report its net accounts receivable on its December 31, 2016, balance sheet.

Reference no: EM131819371

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