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  3. at january 1, 2016, hilltop flagpoles had accounts

At January 1, 2016, Hilltop Flagpoles had Accounts Receivable of $27,000, and Allowance for Bad...

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Question

Accounting

At

January

1,

2016,

Hilltop

Flagpoles had Accounts Receivable of

$27,000,

and Allowance for Bad Debts had a credit balance of

$3,000.

During the year,

HilltopHilltop

Flagpoles recorded the following:

LOADING...

a.

 Sales of

$ 183 comma 000$183,000

($ 164 comma 000$164,000

on account;

$ 19 comma 000$19,000

for cash). Ignore Cost of Goods Sold.

b.

 Collections on account,

$ 135 comma 000$135,000.

c.

 Write-offs of uncollectible receivables,

$ 2 comma 800$2,800.

(Click the icon to view the transactions.)

Read the requirements

LOADING...

1.

 Journalize

Hilltop'sHilltop's

transactions that occurred during

2016.

The company uses the allowance method.

2.

 Post

Hilltop's

transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts.

3.

 Journalize

Hilltop's

adjustment to record bad debts expense assuming

Hilltop

estimates bad debts as

22%

of credit sales. Post the adjustment to the appropriate T-accounts.

4.

 Show how

Hilltop

Flagpoles will report net accounts receivable on its

December

31,

2016

balance sheet.

Answer & Explanation Solved by verified expert
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