Use the following information to answer Exercises E9-18 and E9-19. At January 1, 2018, Hilltop Flagpoles had Accounts Receivable of $28,000, and Allow- ance for Bad Debts had a credit balance of $3,000, During the year, Hilltop Flagpoles recorded the following: a. Sales of $185,000 ($164,000 on account; $21,000 for cash). Ignore Cost of Goods Sold. b. Collections on account, $135,000. C. Write-offs of uncollectible receivables, $2,300. 8 Accounting for uncollectible accounts using the allowance method (percent-of-sales) and reporting receivables on the balance sheet Requirements . Journalize Hilltop's transactions that occurred during 2018. The company uses the allowance method. Post Hilltop's transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts. Journalize Hilltop's adjustment to record bad debts expense assuming Hilltop estimates bad debts as 3% of credit sales. Post the adjustment to the appropriate T-accounts.
Use the following information to answer Exercises E9-18 and E9-19. At January 1, 2018, Hilltop Flagpoles had Accounts Receivable of $28,000, and Allow- ance for Bad Debts had a credit balance of $3,000, During the year, Hilltop Flagpoles recorded the following: a. Sales of $185,000 ($164,000 on account; $21,000 for cash). Ignore Cost of Goods Sold. b. Collections on account, $135,000. C. Write-offs of uncollectible receivables, $2,300. 8 Accounting for uncollectible accounts using the allowance method (percent-of-sales) and reporting receivables on the balance sheet Requirements . Journalize Hilltop's transactions that occurred during 2018. The company uses the allowance method. Post Hilltop's transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts. Journalize Hilltop's adjustment to record bad debts expense assuming Hilltop estimates bad debts as 3% of credit sales. Post the adjustment to the appropriate T-accounts.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 85APSA: Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto...
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