Acc421 Intermediate Accounting: P7-6 The balance sheet of Starsky Company at December 31

Acc421 Intermediate Accounting

Problem 7-6 Journalize Various Accounts Receivable Transactions
The balance sheet of Starsky Company at December 31, 2010, includes the following.
Notes receivable 36,000
Accounts receivable 182,100
Less: Allowance for doubtful accounts 17,300 164,800
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.

Prepare all journal entries necessary to reflect the transactions above
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