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, 2013. 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.
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.
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.
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.