At January 1, 2015, Windy Mountain Flagpoles had accounts receivable of $30,000 and allowance for bad debts had a credit balance of $3,000. During the year, Windy Mountain Flagpoles recorded the following: Sales of $178,000 ($158,000 on account; $20,000 for cash) - Collections on account, $124,000 Write-offs of uncollectible receivables, $2,800 Accounting for uncollectible accounts using the allowance method (percent-of-sales) and reporting receivables on the balance sheet Question 1 Requirements - Journalize Windy's transaction that occurred during 2015. The company uses the allowance method. Post Windy's transaction to the account receivable and allowance for bad debts T-accounts Journalize Windy's adjustment to record bad debts expense assuming Windy estimate bad debts as 4% of credit sales. Post the adjustment to the appropriate T-accounts. Show how Windy Mountain Flagpoles will report net accounts receivable on its December 31, 2015 balance sheet. Question 2 Requirements Journalize Windy's transaction that occurred during 2015. The company uses the allowance method. Post Windy's transaction to the account receivable and allowance for bad debts T-accounts - Journalize Windy's adjustment to record bad debts expense assuming Windy estimate bad debts as 2% of Accounts Receivable. Post the adjustment to the appropriate T-accounts. 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 $30,000 and allowance for bad debts had a credit balance of $3,000. During the year, Windy Mountain Flagpoles recorded the following: Sales of $178,000 ($158,000 on account; $20,000 for cash) - Collections on account, $124,000 Write-offs of uncollectible receivables, $2,800 Accounting for uncollectible accounts using the allowance method (percent-of-sales) and reporting receivables on the balance sheet Question 1 Requirements - Journalize Windy's transaction that occurred during 2015. The company uses the allowance method. Post Windy's transaction to the account receivable and allowance for bad debts T-accounts Journalize Windy's adjustment to record bad debts expense assuming Windy estimate bad debts as 4% of credit sales. Post the adjustment to the appropriate T-accounts. Show how Windy Mountain Flagpoles will report net accounts receivable on its December 31, 2015 balance sheet. Question 2 Requirements Journalize Windy's transaction that occurred during 2015. The company uses the allowance method. Post Windy's transaction to the account receivable and allowance for bad debts T-accounts - Journalize Windy's adjustment to record bad debts expense assuming Windy estimate bad debts as 2% of Accounts Receivable. Post the adjustment to the appropriate T-accounts. Show how Windy Mountain Flagpoles will report net accounts receivable on its December 31, 2015 balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:At January 1, 2015, Windy Mountain Flagpoles had accounts receivable of $30,000 and allowance for bad
debts had a credit balance of $3,000.
During the year, Windy Mountain Flagpoles recorded the following:
Sales of $178,000 ($158,000 on account; $20,000 for cash)
Collections on account, $124,000
Write-offs of uncollectible receivables, $2,800
Accounting for uncollectible accounts using the allowance method (percent-of-sales) and reporting receivables
on the balance sheet
Question 1
Requirements
Journalize Windy's transaction that occurred during 2015. The company uses the allowance method.
Post Windy's transaction to the account receivable and allowance for bad debts T-accounts
Journalize Windy's adjustment to record bad debts expense assuming Windy estimate bad debts as 4%
of credit sales. Post the adjustment to the appropriate T-accounts.
Show how Windy Mountain Flagpoles will report net accounts receivable on its December 31, 2015
balance sheet.
Question 2
Requirements
Journalize Windy's transaction that occurred during 2015. The company uses the allowance method.
Post Windy's transaction to the account receivable and allowance for bad debts T-accounts
Journalize Windy's adjustment to record bad debts expense assuming Windy estimate bad debts as 2%
of Accounts Receivable. Post the adjustment to the appropriate T-accounts.
Show how Windy Mountain Flagpoles will report net accounts receivable on its December 31, 2015
balance sheet.
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