The statement of financial position of Alice Inc. at December 31, 2016, includes the following: Transactions in
Question:
Transactions in 2017 include the following:
1. Accounts receivable of $146,000 were collected. This amount includes gross accounts of $50,000 on which 2% sales discounts were allowed.
2. An additional $16,700 was received in payment of an account that was written off in 2017.
3. Customer accounts of $39,500 were written off during the year.
4. At year end, Allowance for Doubtful Accounts was estimated to need a balance of $52,000. This estimate is based on an analysis of aged accounts receivable.
Instructions
Prepare all necessary journal entries for Alice Inc. to reflect the information above.
Step by Step Answer:
Intermediate Accounting
ISBN: 978-1119048534
11th Canadian edition Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy