Try another version of this question At January 1, 2020, Hilly Mountain Flagpoles had Account Receivable of $31,900 and Allowance for Bad Debts had a credit balance of $3,400. 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 157,000 a. Cash 17,700 a. Sales Revenue 174,700 b. Cash 132,000 b. A/R 132,000 c. Allowance for Bad Debt 2,400 c. A/R 2,400 Debit Credit 31,900 132,000 157,000 2,400 Double line54,500 Double line Debit Credit 2,400 3,400 Double line Double line1,000 Date Description Debit Credit d. Bad Debt Expense 1,725 d. Allowance for Bad Debt 1,725 Debit Credit 1,725 Double line1,725 Double line Debit Credit 2,400 3,400 1,725 Double line Double line2,725
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Accounts Receivable 54,500 Less: Allowance for Bad Debts -2,725Single line Single line51,775