Chapter 9, Problem E9.18E

Accounting for uncollectible accounts using the allowance method (percent-ofs ales) and reporting receivables on the balance sheet

Learning Objectives 1, 3 2. AR, Dec. 31 $54,700

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.