Question: 1 Journalize Windy s transactions that occurred during 2015 The company

1. Journalize Windy’s transactions that occurred during 2015. The company uses the allowance method.
2. Post Windy’s transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts.
3. Journalize Windy’s adjustment to record bad debts expense assuming Windy estimates bad debts as 1% of credit sales. Post the adjustment to the appropriate T-accounts.
4. Show how Windy Mountain Flagpoles will report net accounts receivable on its December 31, 2015 balance sheet.

At January 1, 2015, Windy Mountain Flagpoles had Accounts Receivable of $ 34,000 and Allowance for Bad Debts had a credit balance of $ 3,000. During the year, Windy Mountain Flagpoles recorded the following:
a. Sales of $ 189,000 ($ 165,000 on account; $ 24,000 for cash).
b. Collections on account, $ 133,000.
c. Write- offs of uncollectible receivables, $ 2,800.

  • CreatedJanuary 16, 2015
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