The following occurred in 2017.
1. Novak made sales of $10,700,000. All sales were credit sales. Novak allows some discounts for early payment of receivables and uses the gross method to record sales.
2. Customer accounts of $86,750 were written off during the year.
3. Accounts receivable of $10,800,000 were collected. Collections for the year included $280,000 of accounts on which 2% sales discounts were allowed.
4. $11,500 was received in payment of an account that was written off the books as worthless in 2016.
5. At year-end (December 31, 2017), Novak estimated that its Allowance for Doubtful Accounts needed a balance of $69,000. This estimate is based on an analysis of aged accounts receivable.
6. The note receivable and related interest were due January 1, 2017. Young collected both, in full, on that date.
Required:
Prepare journal entries to record the above transactions.

P8-4b dropping unfavorable division based on the following analysis of last year's operations of groves, inc., a financial vice president of the company believes that the firm's total net income could be increased by $160,000 if its design division were discontinued. (amounts are given in the thousands of dollars.) required provide answers for each of the following independent situations: a. assuming that total fixed costs and expenses would not be affected by discontinuing the design division, prepare an analysis showing why you agree or disagree with the vice president. b. assume that the discontinuance of the design division will enable the company to avoid 30% of the fixed portion of cost of services and 40% of the fixed operating expenses allocated to the design division. calculate the resulting effect on net income. c. assume that in addition to the cost avoidance in requirement (b), the capacity released by discontinuance of the design division can be used to provide 6,000 new services that would have a variable cost per service of $60 and would require additional fixed costs totaling $68,000. at what unit price must the new service be sold if groves is to increase its total net income by $180,000?