Use the following information to answer Exercises E9-18 and E9-19. At January 1, 2018, Hilltop Flagpoles had Accounts Receivable of $28,000, and Allow- ance 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. 8 Accounting for uncollectible accounts using the allowance method (percent-of-sales) and reporting receivables on the balance sheet Requirements . Journalize Hilltop's transactions that occurred during 2018. The company uses the allowance method. Post Hilltop's transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts. Journalize Hilltop's adjustment to record bad debts expense assuming Hilltop estimates bad debts as 3% of credit sales. Post the adjustment to the appropriate T-accounts.
Use the following information to answer Exercises E9-18 and E9-19. At January 1, 2018, Hilltop Flagpoles had Accounts Receivable of $28,000, and Allow- ance 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. 8 Accounting for uncollectible accounts using the allowance method (percent-of-sales) and reporting receivables on the balance sheet Requirements . Journalize Hilltop's transactions that occurred during 2018. The company uses the allowance method. Post Hilltop's transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts. Journalize Hilltop's adjustment to record bad debts expense assuming Hilltop estimates bad debts as 3% of credit sales. Post the adjustment to the appropriate T-accounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How do I solve E9-18
Transcribed Image Text:Use the following information to answer Exercises E9-18 and E9-19.
At January 1, 2018, Hilltop Flagpoles had Accounts Receivable of $28,000, and Allow-
ance 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.
E9-18 Accounting for uncollectible accounts using the allowance method
(percent-of-sales) and reporting receivables on the balance sheet
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 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.
E9-19 Accounting for uncollectible accounts using the allowance method
(percent-of-receivables) and reporting receivables on the balance sheet
Requirements
1. rnalize Hilltop's transactions that occurred during 2018. The company uses the
od.
ons to the Accounts Receivable and Allowance for Bad
ment to record bad debts expense assuming Hilltop esti
accounts receivable. Post the adjustment to the appro-
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