Chapter 8 Homework 17-18 Submit Assignment Due May 1 by 11:59pm Points 10 Submitting a text entry box or a file upload Available Jan 8 at 12am - May 1 at 11:59pm 4 months Use the following information to answer Exercises E8-17 and E8-18 At January 1, 2016, Hilly Mountain Flagpoles had Accounts Receivable of $31,000, and Allowance for Bad Debts had a credit balance of $3,000. During the year, Hilly Mountain Flagpoles recorded the following: 1. Sales of $174,000 ($157,000 on account; $17,000 for cash). Ignore Cost of Goods Sold. 2 Collections on account, $131,000 3. Write-offs of uncollectible receivables, $2,200. E8-17 Accounting for uncollectible accounts using the allowance method (percent-of-sales) and reporting receivables on the balance sheet Learning Objectives 1,3 2 AR, Dec. 31 $54,800 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. E8-18 Accounting for uncollectible accounts using the allowance method (percent-of-receivables) and reporting receivables on the balance sheet Learning Objectives 1, 3 3. Bad Debts Expense $844 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