Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Receivables 471 iuformation to answer Exercises E-18 and E8-19 12018, Debs had a crecdit balance of $3,00. During the year, Hiltop Flagpoles 1S Hilop Flagpoles

image text in transcribed
Receivables 471 iuformation to answer Exercises E-18 and E8-19 12018, Debs had a crecdit balance of $3,00. During the year, Hiltop Flagpoles 1S Hilop Flagpoles had Accounts Receivable of $28,000, and Allow- tbe following $185,000 6164,000 on account, $21,000 for cash), Ignore Cost of Gioods a Sales of s Collections on account, $135,000 Wiere-ofs of uncollectible receivables,$2,.300. 18 Accun-of-sales) and reporting receivables on the balance sheet Requirements for uncollectible accounts using the allowance method ed Learning Objectives 1, 3 2. AR, Dec. 31 $54,700 wrmalze Hiltop' transactions that occurred during 2018: The company uses the alowance method. 2. Post Hilltop's transa ctions to the Accounts Receivable and Allowance for Bad Debts Taccounts , burnalize Hilltop's adjustment to record bad debts expense assuming Hilltop estimates bad debts as 3% of credit sales. Post the adjustment to the Taccounts. 4 Show how Hilltop Flagpoles will report net accounts receivable on its December 31, 2018, balance sheet. E3-19 Accounting for uncollectible accounts using the allowance method Learning Objectives 1,3 (percent-of-receivables) and reporting receivables on the balance sheet ements 3. Bad Debts Expense $4,770 1. Journalize Hilltop's transactions that occurred during 2018. The company uses the allowance method 2. Post Hilltop's transactions to the Accounts Reccivable and Allowance for Bacd Debts T-accounts. 3. Journalize Hilltop's adjustment to record bad debts expense assuming Hilltop esti- mates bad debts as 10% of accounts receivable. Post the adjustment to the appro- priate T-accounts Show how Hillop Flagpoles will report net accounts recivalble on is December 31, 2018, balance sheet. nc Accounting for uncollectible accounts using the allowance method aging-of-receivables) and reporting receivables on the balance sheet Learning Objective 3 2. Allowance CR Bal. $25,360 r31, 2018, the Accounts Receivable balance of GPS Technology is 0000 The Allowance for Bad Debts account has a $24,110 debit balance. GPS etchinology prepares the followving aging schedule for its accounts recivable Age of Accounts Days 61-90 Days Over 90 Days 1-30 Days 31-60 65,000 $50,000 $ 40,000 $ 5.0% 45,000 48.0% Accounts Receivable 3.0% edpercent uncollectible 0.4%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing An International Approach

Authors: Wally J. Smieliauskas, Kathryn Bewley

6th edition

978-0070968295, 9781259087462, 978-0071051415

More Books

Students also viewed these Accounting questions

Question

Exporting is the opposite of importing. True False

Answered: 1 week ago