At January $1,2015,$ Windy Mountain Flagpoles had accounts receivable of $$30,000$ and allowance for bad

debts had a credit balance of $$3,000.$

During the year, Windy Mountain Flagpoles recorded the following:

Sales of $$178,000($ $$158,000$ on account; $$20,000$ for cash$)$

Collections on account, $$124,000$

Write$-$offs of uncollectible receivables, $$2,800$

Accounting for uncollectible accounts using the allowance method $($percent$-$of$-$sales$)$ and reporting receivables

on the balance sheet

Question $1$

Requirements

Journalize Windy's transaction that occurred during $2015.$ The company uses the allowance method.

Post Windy's transaction to the account receivable and allowance for bad debts T$-$accounts

Journalize Windy's adjustment to record bad debts expense assuming Windy estimate bad debts as $4\%{?}_{?}$

of credit sales. Post the adjustment to the appropriate T$-$accounts.

Show how Windy Mountain Flagpoles will report net accounts receivable on its December $31,2015$

balance sheet.

Question $2$

Requirements

Journalize Windy's transaction that occurred during $2015.$ The company uses the allowance method.

Post Windy's transaction to the account receivable and allowance for bad debts T$-$accounts

Journalize Windy's adjustment to record bad debts expense assuming Windy estimate bad debts as $2\%{?}_{?}$

of Accounts Receivable. Post the adjustment to the appropriate T$-$accounts.

Show how Windy Mountain Flagpoles will report net accounts receivable on its December $31,2015$

balance sheet.