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At January 1, 2016, Hilly Mountain Flagpoles had Accounts Receivable of $31,000, and Allowance for Bad Debts had a credit balance of $3,000. During the

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At January 1, 2016, Hilly Mountain Flagpoles had Accounts Receivable of $31,000, and Allowance for Bad Debts had a credit balance of $3,000. During the year, Hilly Mountain Flagpoles recorded the following: a. Sales of $174,000 ($157,000 on account; $17,000 for cash). Ignore Cost of Goods Sold. b. Collections on account, $131,000. c. Write-offs of uncollectible receivables, $2, 200. Journalize Hilly's transactions that occurred during 2016. The company uses the allowance method. Post Hilly's transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts. Journalize Hilly's adjustment to record bad debts expense assuming Hilly estimates bad debts as 4% of credit sales. Post the adjustment to the appropriate T-accounts. Show how Hilly Mountain Flagpoles will report net accounts receivable on its December 31, 2016, balance sheet

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