The following selected transactions relate to Falcetto Company.
Mar. 1 Sold $20,000 of merchandise to Potter Company, terms 2/10, n/30.
11 Received payment in full from Potter Company for balance due.
12 Accepted Juno Company’s $20,000, 6 month, 12% note for balance due.
13 Made Falcetto Company credit card sales for $13,200.
15 Made Visa credit card sales totaling $6,700. A 3% service fee is charged by Visa.
Apr. 11 Sold accounts receivable of $8,000 to Harcot Factor. Harcot Factor assesses a service charge of 2% of the amount of receivables sold.
13 Received collections of $8,200 on Falcetto Company credit card sales andadded finance charges of 1.5% to the remaining balances.
May 10 Wrote off as uncollectible $16,000 of accounts receivable. Falcetto uses the percentage of sales basis to estimate bad debts.
June 30 Credit sales recorded during the first 6 months total $2,000,000.The bad debt percentage is 1% of credit sales.
At June 30, the balance in the allowance account is $3,500.
July 16 One of the accounts receivable written off in May was from J. Simon, who pays the amount due, $4,000, in full.
Instructions
Prepare the journal entries for the transactions.