On January 1, 2014, Harter Company had Accounts Receivable $139,000, Notes Receivable $25,000, and Allowance for Doubtful Accounts $13,200. The note receivable is from Willingham Company. It is a 4-month, 9% note dated December 31, 2013. Harter Company prepares financial statements annually at December 31. During the year, the following selected transactions occurred.
|
Jan.5 |
Sold $20,000 of merchandise to Sheldon Company, terms n/15. |
|
20 |
Accepted Sheldon Company”s $20,000, 3-month, 8% note for balance due. |
|
Feb. 18 |
Sold $8,000 of merchandise to Patwary Company and accepted Patwary”s $8,000, 6-month, 9% note for the amount due. |
|
Apr. 20 |
Collected Sheldon Company note in full. |
|
30 |
Received payment in full from Willingham Company on the amount due. |
|
May 25 |
Accepted Potter Inc.”s $6,000, 3-month, 7% note in settlement of a past-due balance on account. |
|
Aug. 18 |
Received payment in full from Patwary Company on note due. |
|
25 |
The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated. |
|
Sept. 1 |
Sold $12,000 of merchandise to Stanbrough Company and accepted a $12,000, 6-month, 10% note for the amount due. |
Instructions
Journalize the transactions.