Question

The balance sheet of Starsky Company at December 31, 2016, includes the following.

Notes receivable		$36,000
Accounts receivable		182,100
Less: Allowance for doubtful accounts		17,300		$200,800

Transactions in 2017 include the following.

1.		Accounts receivable of $138,000 were collected including accounts of $60,000 on which 2% sales discounts were allowed.
2.		$5,300 was received in payment of an account which was written off the books as worthless in 2016.
3.		Customer accounts of $17,500 were written off during the year.
4.		At year-end, Allowance for Doubtful Accounts was estimated to need a balance of $20,000. This estimate is based on an analysis of aged accounts receivable.

Prepare all journal entries necessary to reflect the transactions above.

Answer 1