Question
Assuming that the books have not been closed for 2017, make the necessary correcting entries. P7-6 (Journalize Various Accounts Receivable Transactions) The balance sheet of
Assuming that the books have not been closed for 2017, make the necessary correcting entries.
P7-6 (Journalize Various Accounts Receivable Transactions) 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.
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