Task: (Journalize Various Accounts Receivable Transactions)
The balance sheet of Antonio Vivaldi Company at December 31, 2007, includes the following.
Notes receivable 36,000
Accounts receivable 182,000
Less: Allowance for doubtful accounts 17,300 200,800
Transactions in 2007 include the following.
1. Accounts receivable of $138,000 was collected including accounts of $40,000 on which 2% sales discounts were allowed.
2. $6,300 was received in payment of an account which was written off the books as worthless in 2007. (Hint: Reestablish the receivable account.)
3. Customer accounts of $17,500 were written off during the year.
4. At year-end the Allowance for Doubtful Accounts was estimated to need a balance of $20,000. This estimate is based on an analysis of aged accounts receivable.
Instructions:
Prepare all journal entries necessary to reflect the transactions above. (Provide calculation as well)