Baer Enterprises’s balance sheet at October 31, 20X1 (fiscal year-end), includes the following:

Accounts receivable ........................................ $ 379,000
Less: Allowance for credit losses ...................... (33,000)
Accounts receivable (net) .............................. $ 346,000

Transactions for fiscal year 20X2 include the following:

a. Due to a product defect, previously sold merchandise totaling $10,500 was returned.

b. Customer accounts totaling $29,750 were written off during the year.

c. On November 1, 20X1, Baer sold teleconferencing equipment and received a $75,000 non–interest-bearing note receivable due in three years. The normal cash selling price for the equipment is $56,349. Assume that the appropriate interest rate for this transaction is 10%.

d. Credit sales during fiscal 20X2 were $395,000; collections totaled $355,000.

e. During fiscal 20X2, Baer sold Hartman, Inc., $45,000 of accounts receivable without recourse. Hartman’s fee for factoring receivables is 9%.

f. Utilizing the gross receivables approach, Baer determined that the October 31, 20X2 fiscal year-end Allowance for credit losses should be $35,000.

Required:

1. Prepare journal entries for each of these events. Also, prepare the entry to accrue interest income on the note.

2. Show Baer’s balance sheet presentation for accounts and notes receivable at October 31, 20X2.