At January 1, 2016, Mountaintop Flagpoles had Accounts Receivable of $ 26 comma 000 and Allowance for Bad Debts had a credit balance of $ 3 comma 000. During the year, Mountaintop Flagpoles recorded the following: a. Sales of $174,000 ($157,000 on account; S17,000 for cash). Ignore Cost of Goods Sold.
b. Collections on account, $131,000.
c. Write-offs of uncollectible receivables, $2,200.

Accounting for uncollectible accounts using the allowance method (percent-of-sales) and reporting receivables on the balance sheet.

Requirements:
1. Journalize Hilly's transactions that occurred during 2016. The company uses the allowance method.
2. Post Hilly's transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts.
3. Journalize Hilly's adjustment to record bad debts expense assuming Hilly estimates bad debts as 496 of credit sales. Post the adjustment to the appropriate T-accounts.
4. Show how Hilly Mountain Flagpoles will report net accounts receivable on its December 31, 2016, balance sheet.