$9-20$ Accounting for uncollectible accounts using the allowance method

$($percent$-$of$-$receivables$)$ and reporting receivables on the balance sheet

Requirements

$1.$ Journalize Hilltop$$s transactions that occurred during January. The company uses

the allowance method.

$2.$ Post Hilltop$$s transactions to the Accounts Receivable and Allowance for Bad

Debts T$-$accounts.

$3.$ Journalize Hilltop$$s adjustment to record bad debts expense assuming Hilltop

estimates bad debts as $10\%$ of accounts receivable on January $31,2024.$ Post the

adjustment to the appropriate T$-$accounts.

$4.$ Show how Hilltop Flagpoles will report net accounts receivable on its January $31,$

$2024,$ balance sheet.