Receivables 521 Use the following information to answer Exercises E9-18 and 1E At January 1, 2018, Hilltop Flagpoles had Accounts Receivable of e for Bad Debts had a credit balance of $3,000. During the year,h anc recorded the following S28,000, and Allow- 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. E9-18 Accounting for uncollectible accounts using the allowance method Learning Objectives 1, 3 (percent-of-sales) and reporting receivables on the balance sheet 2. AR, Dec. 31 $54,700 Requirements 1. Journalize Hiltop'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 FHilltop estimates bad debts as 3% 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, 2018. balance sheet