X i Requirements 1. Journalize Hilly's transactions that occurred during 2018. The company uses the allowance method. 2. Post Hilly's transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts. 3. Journalize Hilly's adjustment to record bad debts expense assuming Hilly estimates bad debts as 14% of accounts receivable. Post the adjustment to the appropriate T-accounts. 4. Show how Hilly Mountain Flagpoles will report net accounts receivable on its December 31, 2018, balance sheet. Print Done At January 1, 2018, Hilly Mountain Flagpoles had Accounts Receivable of $28,000, and Allowance for Bad Debts had a credit balance of $3,000. During the year, Hilly Mountain Flagpoles recorded the following: (Click the icon to view the transactions.) Read the requirements Requirement 1. Journalize Hilly's transactions that occurred during 2018. 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 $176,000 ($155,000 on account; $21,000 for cash). Ignore Cost of Goods Sold. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit 2018 (b.) Collections on account, $130,000. Date Accounts and Explanation Debit Credit 2018 NA full will Tan (c.) Write-offs of uncollectible receivables, $2,100. Date Accounts and Explanation Debit Credit 2018 Requirement 2. Post Hilly'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 Requirement 3. Journalize Hilly's adjustment to record bad debts expense assuming Hilly estimates bad debts as 14% of accounts receivable. Post the adjustment to the appropriate T-accounts. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) First journalize Hilly's adjustment to record bad debts expense. Date Accounts and Explanation Debit Credit 2018 Dec. 31 Post the adjustment to the appropriate T-accounts Enter the unadjusted balances computed in requirment 2 and the the beginning balance for the Bad Debt Expense account. Then post the adjustment and compute the December 31 adjusted balance of each account. (Enter a "0" on the normal side of the account for any zero balances.) Accounts Receivable Allowance for Bad Debts Bad Debts Expense Requirement 4. Show how Hilly Mountain Flagpoles will report net accounts receivable on its December 31, 2018, balance sheet. Balance Sheet (Partial): Current Assets
