Try another version of this question At January 1, 2020, Hilly Mountain Flagpoles had Account Receivable of $30,600 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 154,300 a. Cash 17,700 a. Sales Revenue 172,000 b. Cash 130,100 b. A/R 130,100 c. Allowance for Bad Debt 2,600 c. A/R 2,600 Debit Credit 30,600 130,100 154,300 2,600 Double line52,200 Double line Debit Credit 2,600 3,400 Double line Double line800 Date Description Debit Credit d. Bad Debt Expense 1,810 d. Allowance for Bad Debt 1,810 Debit Credit 1,810 Double line1,810 Double line Debit Credit 2,600 3,400 1,810 Double line Double line2,610
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Accounts Receivable 52,200 Less: Allowance for Bad Debts -2,610Single line Single line49,590