Reference no: EM132184702
Question - At December 31, 2016, Novak Corp. Imports reported this information on its balance sheet.
Accounts receivable $564,800
Less: Allowance for doubtful accounts 35,700
During 2017, the company had the following transactions related to receivables.
1. Sales on account $2,896,800.
2. Sales returns and allowances 91,648.
3. Collections of accounts receivable 2,637,500.
4. Write-offs of accounts receivable deemed uncollectible 43,840.
5. Recovery of bad debts previously written off as uncollectible 13,830.
Required - Prepare the journal entries to record to each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable.