Name ID# Lab Day & Time Group Assignment Applying the allowance method (percent-of-receivables) to account for uncollectibles Learning Objective 3 At January 1, 2018, Hilltop Flagpoles had Accounts Receivable of $28,000, and Allowance for Bad Debts had a credit balance of $3,000. During the year, Hilltop Flagpoles recorded the following: a. Sales of $185,000 ($164,000 on account; $21,000 for cash). Ignore Cost of Goods Sold. b. Collections on account, $135,000. c. Write-offs of uncollectible receivables, $2,300. Requirements 1. Journalize Hilltop's transactions that occurred during 2018. 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 10% of accounts receivable. Post the adjustment to the appropriate T-accounts. Demonstration Applying the allowance method (percent-of-receivables) to account for uncollectibles Learning Objective 3 The Accounts Receivable balance and Allowance for Bad Debts for Signature Lamp Company at December 31, 2017, was $10,800 and $2,000 (credit balance), respectively. During 2018, Signature Lamp Company completed the following transactions: a. Sales revenue on account, $273,400 (ignore Cost of Goods Sold). b. Collections on account, $223,000. c. Write-offs of uncollectibles, $5,900. Requirements 1. Journalize Signature Lamp Company's transactions for 2018 assuming Signature Lamp Company uses the allowance method. 2. Post the transactions to the Accounts Receivable, Allowance for Bad Debts, and Bad Debts Expense T-accounts, and determine the ending balance of each account. 3. Journalize Signature Lamp's adjustment to record bad debts expense assuming Hilltop estimates bad debts as 10% of accounts receivable. Post the adjustment to the appropriate T-accounts