At January 1 2016 Eagle Mountain Flagpoles had Accounts Rece

At January 1, 2016, Eagle Mountain Flagpoles had Accounts Receivable of $26,000 and Allowance for Bad Debts had a credit balance of $3,000. During the year, Eagle Mountain Flagpoles recorded the following (Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize Eagle\'s transactions that occurred during 2016. 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 $177,000 ($162,000 on account; $15,000 for cash). Ignore Cost of Goods Sold. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit More Info 2016 Sales of $177,000 ($162,000 on account: $15,000 for cash). Ignore Cost of Goods Sold. a. b. Collections on account, $128,000. c. Write-offs of uncollectible receivables, $2,400 (b.) Collections on account, $128,000. Date Accounts and Explanation Debit Credit Print Done 2016

Solution

Req 1 Date Accounts and Explanation Debit Credit a 2016 Accounts Receivable $        162,000 Cash $          15,000 sales Revenue $        177,000 (To record sales on account and for cash) b 2016 Cash $        128,000 Accounts Receivable $        128,000 (To record amount collected on account) c 2016 Allowance for bad debts $            2,400 Accounts Receivable $            2,400 (To wrote off uncollectible accounts) Req 2 Accounts Receivable Jan 1 $26,000 $128,000 (b) (a)            162,000                 2,400 (c ) Bal.              57,600 Allowance for Bad Debts (c ) $2,400 $3,000 Jan 1 $600 Bal. Req 3 Dec 31 Bad Debts Expense[(3% x 57600)-600] $            1,128 Allowance for Bad Debts $            1,128 Allowance for Bad Debts (c ) $2,400 $3,000 Jan 1 $600 Bal. 1128 Adj $1,728 Adj Bal Bad Debts expense Adj 1128 Bal 1128 Req 4 Balance Sheet(Partial) Current Assest: Accounts Receivable $          57,600 Less: Allowance for bad debts                 1,728 $          55,872