At January 1, 2016, Hilly Mountain Flagpoles had Accounts Receivable of $31,000, and Allowance for Bad Debts
Question:
a. Sales of $174,000 ($157,000 on account; $17,000 for cash). Ignore Cost of Goods Sold.
b. Collections on account, $131,000.
c. Write-offs of uncollectible receivables, $2,200.
Requirements
1. Journalize Hilly’s transactions that occurred during 2016. The company uses the allowance method.
2. Post Hilly’s transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts.
3. Journalize Hilly’s adjustment to record bad debts expense assuming Hilly estimates bad debts as 4% of credit sales. Post the adjustment to the appropriate T-accounts.
4. Show how Hilly Mountain Flagpoles will report net accounts receivable on its December 31, 2016, balance sheet. Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Question Posted: