Question

%E8-17 (similar to) Question Help At January 1, 2016. Hiltop Flagpoles had Accounts Receivable of $32,000, and Allowance for Bad Debts had a credit balance of 54000 During the year Click the icon to view the transactions) Flagpoles recorded the following Read the results Bethers Seed Requirements. Journalce Hiltops adjustment to record bad debts expense assuming Hop estimates bad debts as 2 of credit sales Post the adjustment to the appropriate accounts Record de the explanation on the lastne of the journal entry table) stjournale H opsadusent to record bad debts expense Accounts and Explanation Debit - Credit Dec 31 adet Expense Allowance for Bad Debits O S Post the adjustment to the appropriate n t to appropriate accounts Lea ther First enter and be the Jan 1 2016 balance for the Bad Debt Expense account the postme Choose roman of een neuesten

Answer 1

Answer-Journal Entries

Date	Account Title and Explanation	Debit ($)	Credit ($)
2016 a	Accounts Receivable	155,000
	Cash	25,000
	Sales Revenue		180,000
	(To record sales on account and in cash)
b.	Cash	138,000
	Accounts Receivable		138,000
	(To record amount collected on account)
c.	Allowance for bad debts	2,200
	Accounts Receivable		2,200
	(To write-off uncollectible accounts)

2- Accounts Receivable

Jan.1,2016 Bal.	$32,000	$138,000	Collected
Sales Revenue	$155,000	$2,200	Write-off
End. bal.	$46,800

Allowance for Bad Debts

Write-off	$2,200	$4,000	Jan.1,2016
		$1,800	Unadjusted Bal.

3-Journal entry to record bad debts:-

Date	Account Title and Explanation	Debit ($)	Credit ($)
2016, Dec.31	Bad Debt Expense	3,100
	Allowance for Bad Debts		3,100
	(To record Bad Debts expense)

Bad Debt Expense= $155,000*2/100= $3,100

Allowance for Bad Debts

Write-off	$2,200	$4,000	Jan.1,2016
		$1,800	Unadjusted Bal.
		$3,100	Bad Debts Expense
		$4,900	End. Bal.

Bad Debts Expenses

Opening Balance	$0
Allowance for Bad Debts	$3,100
End Bal.	$3,100

HILLTOP FLAGPOLES

Partial Balance Sheet

As on December 31,2016

		Amount
Current Assets:-
Accounts Receivable	$46,800
Less: Allowance for Bad Debts	($4,900)	$41,900

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