The balance sheet of Starsky Company at December 31, 2016

(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.

Assuming that the books have not been closed for 2017, make the necessary correcting entries

Here’s the SOLUTION

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