On January 1, 2010, Sands Company had Accounts Receivable of $54,200 and Allowance for Doubtful Accounts of $3,700. Sands Company prepares financial statements annually and uses a perpetual inventory system. During the year the following selected transactions occurred.
Jan. 5 Sold $7,000 of merchandise to Norris Company, terms n/30. Cost of the merchandise sold was $4,000.
Feb. 2 Accepted a $7,000, 4 month, 9% promissory note from Norris Company for balance due.
12 Sold $9,000 of merchandise costing $5,000 to Loflin Company and accepted Loflin’s $9,000, 2 month, 10% note for the balance due.
26 Sold $5,200 of merchandise costing $3,300 to Hossfeld Co., terms n/10.
Apr. 5 Accepted a $5,200, 3 month, 8% note from Hossfeld Co. for balance due.
12 Collected Loflin Company note in full.
June 2 Collected Norris Company note in full.
15 Sold $2,000 of merchandise costing $1,500 to Madrid Inc. and accepted a $2,000, 6 month, 12% note for the amount due.
Instructions
Journalize the transactions.