Try another version of this question At January 1, 2020, Hilly Mountain Flagpoles had Account Receivable of $30,200 and Allowance for Bad Debts had a credit balance of $4,000. 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 157,900 a. Cash 16,100 a. Sales Revenue 174,000 b. Cash 130,200 b. A/R 130,200 c. Allowance for Bad Debt 2,200 c. A/R 2,200 Debit Credit 30,200 130,200 157,900 2,200 Double line55,700 Double line Debit Credit 2,200 4,000 Double line Double line1,800 Date Description Debit Credit d. Bad Debt Expense 985 d. Allowance for Bad Debt 985 Debit Credit 985 Double line985 Double line Debit Credit 2,200 4,000 985 Double line Double line2,785
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Accounts Receivable 55,700 Less: Allowance for Bad Debts -2,785Single line Single line52,915