Joe Jackson opened Jackson's Repairs, Inc. on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books:1. Jackson invested $25,000 cash in the business. 2. Jackson contributed $100,000 of equipment to the corporation. 3. The company paid $2,000 cash to rent office space for the month. 4. The company received $16,000 cash for repair services provided during March. 5. The company paid $6,200 for salaries for the month. 6. The company provided $3,000 of services to customers on account. 7. The company paid cash of $500 for monthly utilities. 8. The company received $3,100 cash in advance of providing repair services to a customer. Based on this information, net income for March would be:
On December 31, 2019, Novak Corp. estimated that 4% of its net accounts receivable of $414,400 will become uncollectible. The company recorded this amount as an addition to Allowance for Doubtful Accounts. The allowance account had a zero balance before adjustment on December 31, 2019. On May 11, 2020, Novak Corp. determined that the Jeff Shoemaker account was uncollectible and wrote off $2,072. On June 12, 2020, Shoemaker paid the amount previously written off.
Prepare the journal entries on December 31, 2019, May 11, 2020, and June 12, 2020.
