At

January

1,

2016,

Hilltop

Flagpoles had Accounts Receivable of

$27,000,

and Allowance for Bad Debts had a credit balance of

$3,000.

During the year,

HilltopHilltop

Flagpoles recorded the following:

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a.	Sales of $ 183 comma 000$183,000 ($ 164 comma 000$164,000 on account; $ 19 comma 000$19,000 for cash). Ignore Cost of Goods Sold.
b.	Collections on account, $ 135 comma 000$135,000.
c.	Write-offs of uncollectible receivables, $ 2 comma 800$2,800.

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Read the requirements

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1.	Journalize Hilltop'sHilltop's transactions that occurred during 2016. 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 22% of credit sales. Post the adjustment to the appropriate T-accounts.
4.	Show how Hilltop Flagpoles will report net accounts receivable on its December 31, 2016 balance sheet.