Question

At January ?1, 2018?, White TopWhite Top Flagpoles had Accounts Receivable of

$27,000? and Allowance for Bad Debts had a credit balance of .$4,000.

During the? year, White TopWhite Top Flagpoles recorded the? following:

?(Click the icon to view the? transactions.)Read the requirements

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.Requirement 1. Journalize

White'sWhite's

transactions that occurred during

20182018.

The company uses the allowance method. ?(Record debits? first, then credits. Select the explanation on the last line of the journal entry? table.

a.) Sales of $187,000

$163,000 on? account;

$24,000 for? cash).

Ignore Cost of Goods Sold. ?(Prepare a single compound journal? entry.)

Date			Accounts and Explanation	Debit	Credit
2018

?(b.) Collections on? account,

$ 138 comma 000$138,000.

Date			Accounts and Explanation	Debit	Credit
2018

?(c.) ?Write-offs of uncollectible? receivables,

$ 2 comma 700$2,700.

Date			Accounts and Explanation	Debit	Credit
2018

Requirement 2. Post

White'sWhite's

transactions to the Accounts Receivable and Allowance for Bad Debts? T-accounts.

Enter the beginning balances and the journal? entries, and then compute the unadjusted balance of each account.

Accounts Receivable					Allowance for Bad Debts

Requirement 3. Journalize

White'sWhite's

adjustment to record bad debts expense assuming

WhiteWhite

estimates bad debts as??

9 %9%

of accounts receivable. Post the adjustment to the appropriate? T-accounts. ?(Record debits? first, then credits. Select the explanation on the last line of the journal entry? table.)First journalize

White'sWhite's

adjustment to record bad debts expense.

Date			Accounts and Explanation	Debit	Credit
2018
Dec. 31

Post the adjustment to the appropriate? T-accounts.

Enter the unadjusted balances computed in requirment 2 and the the beginning balance for the Bad Debt Expense account. Then post the adjustment and compute the

DecemberDecember

3131

adjusted balance of each account. ?(Enter a? "0" on the normal side of the account for any zero? balances.)

Accounts Receivable					Allowance for Bad Debts
Bad Debts Expense

Requirement 4. Show how

White TopWhite Top

Flagpoles will report net accounts receivable on its

DecemberDecember

3131?,

20182018?,

balance sheet.

Balance Sheet (Partial):
Current Assets:

please help and be thourough with answers!!! thank you!!!

Answer 1

Requirement – 1;

S. No.	Accounts Title & Explanation	Debit	Credit
(a).	Cash	$24000
	Accounts Receivable	$163000
	Sales revenue		$187000
	(For recording cash & credit sales)
(b).	Cash	$138000
	Accounts Receivable		$138000
	(For recording amount received from accounts receivable)
(C).	Allowance for bad debt	$2700
	Accounts Receivable		$2700
	(For recording write-off of uncollectible)

Requirement – 2;

Accounts Receivable
Jan. 1, 2018, Beginning balance	$27000	$138000	Collections
Credit sales	$163000	$2700	Write-offs
Unadjusted balance	$49300

Allowance for Bad Debts
Write-offs	$2700	$4000	Jan. 1, 2018, Beginning balance
		$1300	Unadjusted balance

Requirement – 3;

S. No.	Accounts Title & Explanation	Debit	Credit
	Bad debts expense ($49300 * 0.09 – $1300)	$3137
	Allowance for bad debts		$3137
	(For recording bad debts expense)

Accounts Receivable
Jan. 1, 2018, Beginning balance	$27000	$138000	Collections
Credit sales	$163000	$2700	Write-offs
Unadjusted balance	$49300

Allowance for Bad Debts
Write-offs	$2700	$4000	Jan. 1, 2018, Beginning balance
		$1300	Unadjusted balance
		$3137	Adj.
		$4437	Dec. 31, 2018, ending balance

Bad Debts Expesne
Jan. 1, 2018, Beginning balance	$0
Adj.	$3137
Dec. 31, 2018, ending balance	$3137

Requirement – 4;

Balance Sheet
As on December 31, 2018
(Partial)
Current assets;
Accounts receivable	$49300
Less: Allowance for bad debts	($4437)	$44863