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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

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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%

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