The balance sheet of Starsky Company at December 31, 2016, includes the following. Transactions in 2017 include

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

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.
Instructions
Prepare all journal entries necessary to reflect the transactions above.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Intermediate Accounting

ISBN: 978-1118742976

16th edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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