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Mourtainlop Landscaping Sorvices started the year 2023 with an Accounts Roceivable balance of 560,800 and an Allowance for DouthulAccounts balance of $6,100. During the year,
Mourtainlop Landscaping Sorvices started the year 2023 with an Accounts Roceivable balance of 560,800 and an Allowance for DouthulAccounts balance of $6,100. During the year, $5,600 of accounts receivable were identfied as unocllectitlo. Sales revenue for 2023 was $453,000, including crodi saies of $428,000 Cath collections on account were $423,000 during the yead The aging of accourts recetrable yields these data (1) (Click the icon to view the data.) You aie the accountant preparing the Docember 31, 2023, yearend entrios. Reguired Data Required 1. Journalize Mountaintop's (a) credit sales, (b) cash collections on account, (c) write-off of the accounts receivable identified as uncollectible, and (d) bad debt expense based on 0.5 percent of credit sales. 2. Prepare a T-account for the Accounts Receivable and Allowance for Doubtful Accounts accounts. 3. Calculate the balance in the Allowance for Doubtful Accounts based on the aging-of-accounts-receivable method. 4. Make any adjustment required to the Allowance for Doubtful Alarounts based on your calculation in requirement 3. 5. Show how Mountaintop Landscaping Services should report Accounts Receivable on the balance sheet
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