On January 1, 2019, 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, 2017. 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. |
| Jan. 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. |
| Apr. 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. |
| Aug. 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.
Solution
Harter Company
Journal Entries
Journal Entries
