Use the following information to answer Exerdises E9-18 and E9-19. At January 1, 2018, Hilltop...
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Use the following information to answer Exerdises E9-18 and E9-19. At January 1, 2018, Hilltop Flagpoles had Accounts Reccivable 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 Learning Objectives 1 (percent-of-sales) and reporting receivables on the balance sheet Requirements 1. Journalize Hilltop's transactions that occurred during 2018. The company uses the 2. AR, Dec. 31 $54,700 allowance method. 2. Post Hilltop's transactions to the Accounts Reccivable 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. e on its 31, 2018, balance sheet
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