E8-19

Show how Hilly Mountain Flagpoles will report net accounts receivable on its December 31, 2016, balance sheet. Accounting for uncollectible accounts using the allowance method (aging-of-receivables) and reporting receivables on the balance sheet At December 31, 2016, the Accounts Receivable balance of TM Manufacturer is $230,000. The Allowance for Bad Debts account has a $24,000 debit balance. TM Manufacturer prepares the following aging schedule for its accounts receivable: Journalize the year-end adjusting entry for bad debts on the basis of the aging schedule. Show the T-account for the Allowance for Bad Debts at December 31, 2016. Show how TM Manufacturer will report its net accounts receivable on its December 31, 2016, balance sheet