The following occurred in 2017.
1. Novak made sales of $10,700,000. All sales were credit sal...
Business, 24.04.2020 17:55 dakshshberry
The following occurred in 2017.
1. Novak made sales of $10,700,000. All sales were credit sales. Novak allows some discounts for early payment of receivables and uses the gross method to record sales.
2. Customer accounts of $86,750 were written off during the year.
3. Accounts receivable of $10,800,000 were collected. Collections for the year included $280,000 of accounts on which 2% sales discounts were allowed.
4. $11,500 was received in payment of an account that was written off the books as worthless in 2016.
5. At year-end (December 31, 2017), Novak estimated that its Allowance for Doubtful Accounts needed a balance of $69,000. This estimate is based on an analysis of aged accounts receivable.
6. The note receivable and related interest were due January 1, 2017. Young collected both, in full, on that date.
Required:
Prepare journal entries to record the above transactions.
Answers: 1
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