Question

At January 1, 2018, Hilly Mountain Flagpoles had Accounts Receivable of $34,000, and Allowance for Bad Debts had a credit balance of $4,000. During the year, Hilly Mountain Flagpoles recorded the following: i (Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize Hilly's transactions that occurred during 2018. The company uses the allowance method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) (a.) Sales of $182,000 ($163,000 on account: $19,000 for cash). Ignore Cost of Goods Sold. (Prepare a single compound journal entry) Date Accounts and Explanation Debit Credit í Requirements 2018 1. Joumalize Hilly's transactions that occurred during 2018. The company uses the allowance method. 2. Post Hilly's transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts. 3. Joumalize Hilly's adjustment to record bad debts expense assuming Hilly estimates bad debts as 1% of credit sales. Post the adjustment to the appropriate T-accounts. 4. Show how Hilly Mountain Flagpoles will report net accounts receivable on its December 31, 2018, balance sheet. i More Info Print Done a. Sales of $182,000 ($163,000 on account: $19,000 for cash). Ignore Cost of Goods Sold. b. Collections on account, $124,000. c. Write-offs of uncollectible receivables, $2,600. Print Done Check Answer. parts O remaining Clear All Check Answer

Answer 1

ALJanuan 2018, HAly mountain Dak Debih Cedit ACCOunt Name (a) 2018 cash 19000 Account Re caivatle 163000 TO Saley (82000 $ 0secosd sales (b) cash 2018 124000 ACCOunt ReCaivable TO 124000 CTO aecord collection of cash) 2018 Allowan ce for BOd Debts 2600 TO ACCOUnt Reaivabie 2600 CTO Wntoff uncallectib1e accounts Req 2 Account Recaivable Bal Jan 1 NetcaraitsGle unaajusteol BOlane 34000 collection S 124000 CUnHe ofp 2600 30400 Allowance fer Bad Debts brteofe f2600 yans 4000 Beg Bay Dec 31 onadjusied 6a FI400 Debit edu ACCount Nome Rad pebt EXPense 1630 T0 A1Owance for Bad Delt 16.30 Dec3 CtO arcord bad debl exPense Bad pestEXP P163000K l2)

AcCount pe cuvable Balana Net caeait sale Unadlusted Ba Jan1 +34000 collection 163000 wte off 124000 F 2600 F0400 Dec31 AdjuSted Bai S30400 Allowance for BOd Debts 2600 4000 BOlance Tang unadjusted 6au A djustment Adjusted Balance r400 1630 Dec 31 3030 Rad-Debt EXPense Bal Jon 1 Adjustment 1630 f1630 Dec 31 Ba Balance sheat CPastial) Curent ASSets: 40400 Account Re caivable (3030) Leis: Alowanco Fo BCd be6 6斗370 Net account Recaiva ble