The balance sheet of Antonio Vivaldi Company at December 31, 2007, includes the following. Transactions in 2008
Question:
The balance sheet of Antonio Vivaldi Company at December 31, 2007, includes the following.
Transactions in 2008 include the following.
1. Accounts receivable of $138,000 were collected including accounts of $40,000 on which 2% sales discounts were allowed.
2. $6,300 was received in payment of an account which was written off the books as worthless earlier in 2008.
3. Customer accounts of $17,500 were 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.
Instructions
Prepare all journal entries necessary to reflect the transactions above.
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...
Step by Step Answer:
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso