At January $1,2025,$ Eagle Mountain Clothing Flagpoles had Accounts Receivable of $$32,000,$ and Allowance for Bad Debts had a credit balance of $$4,000.$ During the

Eagle Mountain Clothing Flagpoles recorded the following transactions for January:

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Requirement $1.$ Journalize Eagle Mountain Clothing's transactions that occurred during January. 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 $$183,000($ $$165,000$ on account; $$18,000$ for cash$).$ Ignore Cost of Goods Sold. $($Prepare a single compound journal entry.$)$

$($b$.)$ Collections on account, $$130,000.($c$.)$ Write$-$offs of uncollectible receivables, $$2,700.$

Requirement $2.$ Post Eagle Mountain Clothing's transactions to the Accounts Receivable and Allowance for Bad Debts T$-$accounts.

Enter the beginning balances and the journal entries, and then compute the unadjusted balance of each account.

Accounts Receivable

Allowance for Bad Debts

Requirement $3.$ Journalize Eagle Mountain Clothing's adjustment to record bad debts expense assuming Eagle Mountain Clothing estimates bad debts as $5\%$ of account. Requirement $2.$ Post Eagle Mountain Clothing's transactions to the Accounts Receivable and Allowance for Bad Debts T$-$accounts.

Enter the beginning balances and the journal entries, and then compute the unadjusted balance of each account.

Accounts Receivable

Allowance for Bad Debts

Requirement $3.$ Journalize Eagle Mountain Clothing's adjustment to record bad debts expense assuming Eagle Mountain Clothing estimates bad debts as $5\%$ of accounts

receivable on January $31,2025.$ 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 Eagle Mountain Clothing's adjustment to record bad debts expense. Enter the unadjusted balances computed in requirment $2$ and the the beg$$nn$$ng balance tor the Bad Debt Expense account. I hen post the adjustment and compute the

January $31$ adjusted balance of each account. $($Enter a $"$O$"$ on the normal side of the account for any zero balances.$)$

Accounts Receivable

Allowance for Bad Debts

Requirement $4.$ Show how Eagle Mountain Clothing will report net accounts receivable on its January $31,2025,$ balance sheet.

Balance Sheet $($Partial$)$:

Current Assets:Transactions

a$.$ Sales of $$183,000($ $$165,000$ on account; $$18,000$ for cash$).$

Ignore Cost of Goods Sold.

b$.$ Collections on account, $$130,000.$

c$.$ Write$-$offs of uncollectible receivables, $$2,700.$

Requirements

Journalize Eagle Mountain Clothing's transactions that occurred during

January. The company uses the allowance method.

Post Eagle Mountain Clothing's transactions to the Accounts

Receivable and Allowance for Bad Debts T$-$accounts.

Journalize Eagle Mountain Clothing's adjustment to record bad debts

expense assuming Eagle Mountain Clothing estimates bad debts as

$5\%$ of accounts receivable on January $31,2025.$ Post the adjustment to

the appropriate T$-$accounts.

Show how Eagle Mountain Clothing will report net accounts receivable

on its January $31,2025,$ balance sheet.At January $1,2025,$ Eagle Mountain Clothing Flagpoles had Accounts Receivable of $ $32$ comma $000,$ and Allowance for Bad Debts had a credit balance of $ $4$ comma $000.$ During the$$ year, Eagle Mountain Clothing Flagpoles recorded the following transactions for January$$:

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