X 1 i 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. od Print Done At January 1, 2024, Mountaintop Flagpoles had Accounts Receivable of $28,000, 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 (a.) Sales of $186,000 ($164,000 on account: $22,000 for cash). Ignore Cost of Goods Sold. (Prepare a single compound journal entry) Date Accounts and Explanation Debit Credit 2024 Jan Accounts Receivable 164,000 Cash 22.000 Sales Revenue 186,000 Record sales for the year, (b) Collections on account, $129,000 Date Accounts and Explanation Debit Credit 2024 Jan 129,000 Cash Accounts Receivable 129.000 Collected cash on account (c.) Write-offs of uncollectible receivables, $2,300. Date Accounts and Explanation Debit Credit 2024 Jan. 2,300 Allowance for Bad Debts Accounts Receivable 2,300 Wrote off uncollectible accounts. Requirement 2. Post Mountaintop's transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts. Enter the beginning balances and the journal entries, and then compute the unadjusted balance of each account. Accounts Receivable Allowance for Bad Debts Jan. 1. 2024 Bal. 28,000 129,000 Collections Write-offs 2,300 4,000 Jan. 1, 2024 Bal. Net credit sales 164,000 2,300 Write-offs Unadj. Bal. 60,700 1,700 Unadj. Bal. Post the adjustment to the appropriate T-accounts. First enter the beginning balance for the Bad Debt Expense account, then post the adjustment to the appropriate T-accounts. (Enter a "0" on Accounts Receivable Allowance for Bad Debts Jan. 1, 2024 Bal. 28,000 129,000 Collections Write-offs 2,300 4,000 Jan. 1, 2024 Bal. Net credit sales 2,300 Write-offs 164,000 60,700 1,700 Unadj. Bal. Unadj. Bal. Adj. Jan. 31, 2024 Bal. Bad Debts Expense