Question

E9-19 (similar to) Question Help At January 1, 2018 White Top Flagpoles had Accounts Recelvable of $34,000, and Allowance lor Bad Debts had a credit balance of $3,000. Ouring the year, White Top Flagpoles recorded the following (Click the icon to view the transactions) Read he earements Requirement 1. Journasze whee's transactions occurred during 2018 me company uses me wance method iRecord detts first. then creats Select the e par abon on the ษst Breof near al entry table.) (a) Saies of $183,000 (3163.000 on account $20,000 for cash) ignore Cos of G0ods Soid. (Prepare a single compound jounal entry,) Requirements Jourmalize White's transactions that ocourred during 2018 The company uses the alowance a. Saies or $183.000 5163 000 on accouns $20.000 Tor casn gnore Cost of Goods Sold 2 Post Wne's tansacions to the Accounts Receivabe and Aowance or Bad Dets T-accounts a. Journalize Whites adjustment to recond bad debts experse assuming e wrte-ofs of uncolecible receivabis $2.400 adjustment to the appropriate T-accounts 4. Show how White Top Flagpoles wel report net accounts ecevable on ts December 31, 2018, Print Done Choose from any lst or enter any number in the input fields and then click Check Print Done

Answer 1

1.

Date	Accounts and Explanation	Debit	Credit
2018
(a)	Cash	20000
	Accounts receivable	163000
	Sales revenue		183000
	(To record sales)
(b)	Cash	134000
	Accounts receivable		134000
	(To record collections on account)
(c)	Allowance for bad debts	2400
	Accounts receivable		2400
	(To record write-offs of uncollectible receivables)

2.

Accounts Receivable
Jan. 1 bal.	34000
(a)	163000	134000	(b)
		2400	(c)
Dec. 31 bal.	60600
Allowance for Bad Debts
		3000	Jan. 1 bal.
(c)	2400

3.

Date	Accounts and Explanation	Debit	Credit
2018
Dec. 31	Bad debts expense [(11% x $60600) - ($3000 - $2400)]	6066
	Allowance for bad debts		6066
	(To record bad debts expense)

Allowance for Bad Debts
		3000	Jan. 1 bal.
(c)	2400	6066	Dec. 31 adj.
		6666	Dec. 31 bal.

4.

Accounts Receivable	60600
Less: Allowance for bad debts	6666
Net accounts receivable	53934