Try another version of this question At January 1, 2020, Hilly Mountain Flagpoles had Account Receivable of $30,700 and Allowance for Bad Debts had a credit balance of $3,100. During the year, Hilly Mountain Flagpoles recorded the following: Journalize Hilly Mountain Flagpoles transactions that occurred during 2020. The company uses the allowance method. Post the transactions to the Accounts Receivable and Allowance for Bad Debts T accounts. d. Journalize Hilly Mountain Flagpoles adjustment to record bad debts expense assuming Hilly Mountain Flagpoles estimates bad debts as 5% of accounts receivable. Post the adjustment to the appropriate T accounts. Show how Hilly Mountain Flagpoles will report net accounts receivable on its December 31, 2020, Balance Sheet.
Date Description Debit Credit a. a. a. b. b. c. c. Debit Credit Double line Double line Debit Credit Double line Double line Date Description Debit Credit d. d. Debit Credit Double line Double line Debit Credit Double line Double line
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Single line Single line Date Description Debit Credit a. A/R 155,200 a. Cash 17,500 a. Sales Revenue 172,700 b. Cash 130,900 b. A/R 130,900 c. Allowance for Bad Debt 2,300 c. A/R 2,300 Debit Credit 30,700 130,900 155,200 2,300 Double line52,700 Double line Debit Credit 2,300 3,100 Double line Double line800 Date Description Debit Credit d. Bad Debt Expense 1,835 d. Allowance for Bad Debt 1,835 Debit Credit 1,835 Double line1,835 Double line Debit Credit 2,300 3,100 1,835 Double line Double line2,635
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Accounts Receivable 52,700 Less: Allowance for Bad Debts -2,635Single line Single line50,065