Try another version of this question At January 1, 2020, Hilly Mountain Flagpoles had Account Receivable of $30,300 and Allowance for Bad Debts had a credit balance of $3,500. 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 3% 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 154,500 a. Cash 16,600 a. Sales Revenue 171,100 b. Cash 130,000 b. A/R 130,000 c. Allowance for Bad Debt 2,500 c. A/R 2,500 Debit Credit 30,300 130,000 154,500 2,500 Double line52,300 Double line Debit Credit 2,500 3,500 Double line Double line1,000 Date Description Debit Credit d. Bad Debt Expense 569 d. Allowance for Bad Debt 569 Debit Credit 569 Double line569 Double line Debit Credit 2,500 3,500 569 Double line Double line1,569
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Accounts Receivable 52,300 Less: Allowance for Bad Debts -1,569Single line Single line50,731