Reference no: EM132544199

The Accounts Receivable balance for Highland?, Inc. at December? 31, 2017?, was $ 28000. During 2018?, Highland earned revenue of $ 462, 000 on account and collected $ 328, 000 on account. Highland wrote off $ 6, 100 receivables as uncollectible. Industry experience suggests that uncollectible accounts will amount to 3% of accounts receivable.

Question 1: Assume Highland had an unadjusted $ 2, 400 credit balance in Allowance for Bad Debts at December ?31, 2018. Journalize Highland?'s December31, 2018?, adjustment to record bad debts expense using the? percent-of-receivables method. ?(Record debits? first, then credits. Select the explanation on the last line of the journal entry? table.)

Question 2: Assume Highland had an unadjusted $ 2, 200debit balance in Allowance for Bad Debts at December ?31, 2018. Journalize Highland?'s December ?31, 2018?, adjustment to record bad debts expense using the? percent-of-receivables method. ?(Record debits? first, then credits. Select the explanation on the last line of the journal entry? table.)