show steps

Below is the net accounts receivable at January 31, 2020 for Maju Inc.: Accounts Receivable $370,000 Less: Allowance for sales discounts ($7,000) Less: Allowance for Doubtful Accounts ($67,150) Net Receivable $295,850 Transactions during the year 2020 include the following: 1. Sales Revenue was $440,000. $130,000 of the sales revenue was received in cash. 2. Customer paid off $250,000 of the outstanding accounts receivable. Of this reduction to the accounts receivable, $50,000 was paid in time to earn a 3% discount. 3. Accounts of $41,000 were written off during the year. 4. An additional $10,700 was received in payment of an account that was written off in 2020. 5. At year end, an analysis of accounts receivable indicates that an allowance of $4,000 is needed for sales discounts. 6. At year end, Allowance for Doubtful Accounts was estimated to need a balance of $41,000. This estimate is based on an analysis of aged accounts receivable. Required: a. Prepare journal entries for the above transactions. (12 points) b. Show how the net accounts receivable appear on the statement of financial position on December 31, 2020. (2 points)