prepare the journal entries for the transactions 572072

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 on
outstanding account receivable.

13

Made B. Dylan Corp. credit card sales for $13,200.

15

Made Visa credit sales totaling $6,700. A 5% 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 B. Dylan Corp. credit card sales.

May

10

Wrote off as uncollectible $16,000 of accounts receivable. (B. Dylan Corp.
uses the percentage of receivables basis to estimate bad debts.)

June

30

The balance in accounts receivable at the end of the first 6 months is $200,000
and the bad debt percentage is 10%. At June 30 the credit balance in the
allowance account prior to adjustment is $3,500. Recorded bad debt expense.

July

16

One of the accounts receivable written off in May pays the amount due,
$4,000, in full.