On January 1, 2010, Sands Company had Accounts Receivable $55,600 and Allowance for Doubtful Accounts $5,390. Sands Company prepares financial statements annually and uses a perpetual inventory system. During the year the following selected transactions occurred.
| Jan. 5 |
Sold $8,200 of merchandise to Norris Company, terms n/30. Cost of the merchandise sold was $4,240. |
| Feb. 2 |
Accepted a $8,200, 4-month, 9% promissory note from Norris Company for balance due. |
| Feb. 12 |
Sold $9,840 of merchandise costing $5,520 to Loflin Company and accepted Loflin's $9,840, 2-month, 10% note for the balance due. |
| Feb. 26 |
Sold $6,050 of merchandise costing $4,900 to Hossfeld Co., terms n/10. |
| Apr. 5 |
Accepted a $6,050, 3-month, 8% note from Hossfeld Co. for balance due. |
| Apr. 12 |
Collected Loflin Company note in full. |
| June 2 |
Collected Norris Company note in full. |
| June 15 |
Sold $3,890 of merchandise costing $1,850 to Madrid Inc. and accepted a $3,890, 6-month, 12% note for the amount due. |