The balance sheet of cullumber company at december 31, 2019, includes the following.
notes receivable $44,400
accounts receivable 188,800
less: allowance for doubtful accounts 23,800 $209,400
transactions in 2020 include the following.
1. accounts receivable of $149,500 were collected including accounts of $64,100 on which 4% sales discounts were allowed.
2. $5,590 was received in payment of an account which was written off the books as worthless in 2019.
3. customer accounts of $24,000 were written off during the year.
4. at year-end, allowance for doubtful accounts was estimated to need a balance of $27,600. this estimate is based on an analysis of aged accounts receivable.
prepare all journal entries to reflect the transactions above.

Cash                    146,936 debit

Sales discount        2,546 debit

Accounts Receivables                149,500 credit

--to record the collection of A/R--

Accounts Receivables        5,590 debit

Allowance for doubtful accounts 5,590 credit

Cash                                    5,590 debit

A/R                                                 5,590 credit

--to record recovery of write-off accounts--

Allowance for doubtful accounts 24,000 debit

              Accounts Receivables                      24,000 credit

--to record write-off accounts--

bad debt expense       22,210 debit

   Allowance for doubtful accounts    22,210 credit

--to record year-end adjustment for bad debt expense--

Explanation:

1) sales discount: 64,100 x 4% = 2,564

  cash proceeds: 149,500 - 2,564 = 146,936

2) we should reverse the write-off entry and reocrd the collection

3) we decrease both, the allowance and A/R by the uncollectible amount

4) we should adjust the allowance to match the estimated balance:

currnet balance:

DEBIT     CREDIT

                23,800

24,000

                  5,590

                  5,390

adj                     ?

ending B 27,600

adjusmtent: 27,600 - 5,390 = 22,210

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23