A On January 1, 2012, Sather Company had Accounts Receivable of $54,200 and Allowance for Doubtful Accounts

Question:

A On January 1, 2012, Sather Company had Accounts Receivable of $54,200 and Allowance for Doubtful Accounts of $3,700. Sather Company prepares financial statements annually. During the year, the following selected transactions occurred.

Jan. 5 Sold $4,000 of merchandise to Noel Company, terms n/30.

Feb. 2 Accepted a $4,000, 4-month, 9% promissory note from Noel Company for balance due.

12 Sold $12,000 of merchandise to Lima Company and accepted Lima’s $12,000, 2-month, 10% note for the balance due.

26 Sold $5,200 of merchandise to Hubbard Co., terms n/10.

Apr. 5 Accepted a $5,200, 3-month, 8% note from Hubbard Co. for balance due.

12 Collected Lima Company note in full.

June 2Collected Noel Company note in full.

15Sold $2,000 of merchandise to Matthews Inc. and accepted a $2,000, 6-month, 12% note for the amount due.

Instructions

Journalize the transactions. (Omit cost of goods sold entries.)

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...