On January 1, 2020, 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, 2019. 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. (Omit cost of goods sold
entries.)