At January 1, 2015, Windy Mountain Flagpoles had accounts receivable of $34,000 and allowance for bad debts had a credit balance of $3,000. During the year, Windy Mountain Flagpoles recorded the following:

Sales of $189,000 ($165,000 on account; $24,000 for cash)

Collections on account, $133,000

Write-offs of uncollectible receivables, $2,800

Accounting for uncollectible accounts using the allowance method (percent-of-recievables) and reporting receivables on the balance sheet

Journalize Windys transaction that occurred during 2015. The company uses the allowance method.

Post Windys transaction to the account receivable and allowance for bad debts T-accounts

Journalize Windys adjustment to record bad debts expense assuming Windy estimate bad debts as 2% 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.