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Problem 7-6 The balance sheet of Starsky Company at December 31, 2010

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Problem 7-6 The balance sheet of Starsky Company at December 31, 2010, includes the following. Notes receivable$36,000 Accounts receivable182,100 Less: Allowance for doubtful accounts 17,300200,800 Transactions in 2010 include the following. 1.Accounts receivable of $318,000 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 2010. (Hint: Reestablish the receivable account) 3.Customer accounts of $17,500 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

 

Paper#74003 | Written in 18-Jul-2015

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