The balance sheet of Starsky Company at December 31, 2019, includes the following.

Transactions in 2020 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 2019.

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 refl ect the transactions above.

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Notes receivable Accounts receivable Less: Allowance for doubtful accounts $ 36,000 182,100 $200,800 17,300