Q11

More info a. Sales of $187,000 ( $162,000 on account; $25,000 for cash). Ignore Cost of Goods Sold. b. Collections on account, $129,000. c. Write-offs of uncollectible receivables, $2,000. At January 1,2024 , Mountaintop Flagpoles had Accounts Receivable of $31,000, and Allowance for Bad Debts had a credit balance of $4,000. During the year, Mountaintop Flagpoles recorded the following transactions for January: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize Mountaintop's transactions that occurred during January. The company uses the allowance method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) (a.) Sales of $187,000 ( $162,000 on account; $25,000 for cash). Ignore Cost of Goods Sold. (Prepare a single compound journal entry.) Requirements 1. Journalize Mountaintop's transactions that occurred during January. The company uses the allowance method. 2. Post Mountaintop's transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts. 3. Journalize Mountaintop's adjustment to record bad debts expense assuming Mountaintop estimates bad debts as 15% of accounts receivable on January 31,2024 . Post the adjustment to the appropriate T-accounts. 4. Show how Mountaintop Flagpoles will report net accounts receivable on its January 31, 2024, balance sheet