Entering Accounts Receivables into in the respective ledger account and balance the accounts

Your co. Ltd provided you with the following accounts receivable related information for three years as follows;

                                                                                     Amt. $

31/12/2014 Accounts Receivables                              100,000

31/12/2015 Accounts Receivables                              125,000

31/12/2016 Accounts Receivables                              110,000

The management set a discount allowable policy effect from 1/1/2014 of 5% of the good accounts receivables in each financial period.

Required

Enter the following transactions in the respective ledger account and balance the accounts where applicable, prepare profit and loss account (i.e. comprehensive income statement) and extract the respective balance sheet (i.e. statement of financial position) for the three years, 2014, 2015 and 2016

SOLUTION