Prepare all journal entries necessary to reflect transaction

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

Notes receivable$38,600

Accounts receivable188,900

Less: Allowance for doubtful accounts17,700 $209,800

Transactions in 2020 include the following.

1.Accounts receivable of $148,500 were collected including accounts of $70,100 on which 3% sales discounts were allowed.

2.$6,130 was received in payment of an account which was written off the books as worthless in 2019.

3.Customer accounts of $17,900 were written off during the year.

4.At year-end, Allowance for Doubtful Accounts was estimated to need a balance of $28,500. This estimate is based on an analysis of aged accounts receivable.

Prepare all journal entries necessary to reflect the transactions above.

Reference no: EM132386441

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