Prepare all necessary journal entries including closing the books.
1. on Feb. Company A issued a note for $12,000 which pays a 6% interest rate.
2. on April 1st Company A's customer paid 38,000 out of 40,000 outstanding balance. No other payments were received from a customer during the year. The company estimates bad debts at 8% of customer balances each year, and this receivable is considered collectible at year end.
3. In July sold an inventory costing 15,000 for 50,000 on account.