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18930 IS WRONG At January 1, 2018, Blue Mountain Flagpoles had Accounts Receivable of $28,000, and Allowance for Bad Debts had a credit balance of
18930 IS WRONG
At January 1, 2018, Blue Mountain Flagpoles had Accounts Receivable of $28,000, and Allowance for Bad Debts had a credit balance of $4,000. During the year, Blue Mountain Flagpoles recorded the following: (Click the icon to view the transactions.) Read the requirements. LTTEI LC Weymummy walang anu un jurnaI EILICO, anu LCIT compute MC unaujuotcu walaMILE VI can account. Accounts Receivable Allowance for Bad Debts Jan. 1, 2018 Bal. 28,000 138,000 Collections 4,000 Jan. 1, 2018 Bal. Net credit sales 161,000 2,000 Write-offs Write-offs 2,000 Unadj. Bal. 49,000 2,000 Unadj. Bal. Requirement 3. Journalize Blue's adjustment to record bad debts expense assuming Blue estimates bad debts as 13% of accounts receivable. Post the adjustment to the appropriate T-accounts. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) First journalize Blue's adjustment to record bad debts expense. Date Accounts and Explanation Debit Credit 2018 Dec. 31 Bad Debts Expense 18930 Allowance for Bad Debts 18930 Recorded bad debts expense for the period. Choose from any list or enter any number in the input fields and then click Check Answer. a. Sales of $186,000 ($161,000 on account; $25,000 for cash). Ignore Cost of Goods Sold. b. Collections on account, $138,000. c. Write-offs of uncollectible receivables, $2,000Step by Step Solution
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