Instructions:
Journalize the transactions.
On January 1, 2002, John Diego Company had Accounts Receivable $146,000, Notes Receivable of $15,000, and Allowance for Doubtful Accounts of $13,200. The note receivable is from Trudy Borke Company. It is a 4-month, 12% note dated December 31, 2001. John Diego Company prepares financial statements annually. During the year the following selected transactions occurred.
Jan. 5 Sold $18,000 of merchandise to Jones Company, terms n/15.
20 Accepted Jones Company's $18,000, 3-month, 9% note for balance due.
Feb. 18 Sold $8,000 of merchandise to Swan Company and accepted Swan's $8,000, 6-month, 10% note for the amount due.
Apr. 20 Collected Jones Company note in full.
30 Received payment in full from Trudy Borke Company on the amount due.
May 25 Accepted Avita Inc.'s $6,000, 3-month, 8% note in settlement of a past due balance on account.
Aug. 18 Received payment in full from Swan Company on note due.
25 The Avita Inc. note was dishonored. Avita Inc. is not bankrupt; future payment is anticipated.
Sept. 1 Sold $12,000 of merchandise to Jose Trevino Company and accepted a $12,000, 6-month, 10% note for the amount due.