On January 1, 2002, Case Western Company had Accounts Receivable of $54,200 and Allowance for Doubtful Accounts of $4,700. Case Western Company prepares financial statements annually. During the year the following selected transactions occurred.Jan. 5 Sold $7,000 of merchandise to Garth Brooks Company, terms n/30.
Feb. 2 Accepted a $7,000, 4-month, 12% promissory note from Garth Brooks Company for balance due.
12 Sold $7,800 of merchandise to Gage Company and accepted Gage's $7,800,
2-month, 10% note for the balance due.
26 Sold $4,000 of merchandise to Mathias Co., terms n/10.
Apr. 5 Accepted a $4,000, 3-month, 8% note from Mathias Co. for balance due 12 Collected Gage Company note in full.
June 2 Collected Garth Brooks Company note in full.
July 5 Mathias Co. dishonors its note of April 5. It is expected that Mathias will eventually pay the amount owed.
15 Sold $5,000 of merchandise to Tritt Co. and accepted Tritt's $5,000, 3-month, 12% note for the amount due.
Oct. 15 Tritt Co.'s note was dishonored. Tritt Co. is bankrupt, and there is no hope of future settlement.