Try another version of this question At January 1, 2020, Hilly Mountain Flagpoles had Account Receivable of $31,000 and Allowance for Bad Debts had a credit balance of $3,300. 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 2% 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 154,900 a. Cash 16,500 a. Sales Revenue 171,400 b. Cash 130,700 b. A/R 130,700 c. Allowance for Bad Debt 2,200 c. A/R 2,200 Debit Credit 31,000 130,700 154,900 2,200 Double line53,000 Double line Debit Credit 2,200 3,300 Double line Double line1,100 Date Description Debit Credit d. Bad Debt Expense -40 d. Allowance for Bad Debt -40 Debit Credit -40 Double line Double line40 Debit Credit 2,200 3,300 -40 Double line Double line1,060
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Accounts Receivable 53,000 Less: Allowance for Bad Debts -1,060Single line Single line51,940