The balance sheet of Antonio Vivaldi Company at Dec 31, 2007 ,includes the following:
Notesreceivable 36,000
Accountsreceivable 182,100
Less: Allowance for doubtfulaccts 200,800
Transactions in 2007 include the following:
1. Accounts receivable of $138,000 were collected includingaccounts of $40,000 on which 2% sales discounts were allowed.
2. $6,300 was received in payment of an account which waswritten off teh books as worthless in 2007. (Hint:reestablish the receivable account)
3. Customer accounts of $17,500 were wretten off during theyear.
4. At year-end the Allowance for Doubtful Accounts wasestimated to need a balance of $20,000 . This estimate isbased on an analysis of aged accounts receivable.
Instructions: Prepare all journal entries necessary to reflect the tranactions above.