On January 1, 2017, Valdez SA had Accounts Receivable €91,000 and Allowance for Doubtful Accounts €8,100. Valdez prepares financial statements annually at December 31.
During the year, the following selected transactions occurred.
Jan. 5 Sold €8,400 of merchandise to Patrick Co., terms n/30.
Feb. 2 Accepted an €8,400, 4-month, 5% promissory note from Patrick for the balance due.
12 Sold €13,500 of merchandise to Marguerite SA and accepted Marguerite's €13,500, 2-month, 6% note for the balance due.
26 Sold €7,000 of merchandise to Felton Co., terms n/10.
Apr. 5 Accepted a €7,000, 3-month, 8% note from Felton Co. for the balance due.
12 Collected Marguerite note in full.
June 2 Collected Patrick note in full.
July 5 Felton Co. dishonors its note of April 5. It is expected that Felton will eventually pay the amount owed.
15 Sold €11,000 of merchandise to Planke Co. and accepted Planke's €11,000, 3-month, 8% note for the amount due.
Oct. 15 Planke Co.'s note was dishonored. Planke Co. is bankrupt, and there is no hope of future settlement.
Instructions
Journalize the transactions.