On January 1, 1998, Ricardo Company had Accounts Receivable \(\$ 146,000\); Notes Receivable \(\$ 15,000\); and Allowance for Doubtful Accounts \(\$ 13,200\). The note receivable is from Annabelle Company. It is a 4 -month, \(12 \%\) note dated December 31, 1997. Uptown Company prepares financial statements annually. During the year the following selected transactions occurred:

Jan. 5 Sold \(\$ 12,000\) of merchandise to George Company, terms \(\mathrm{n} / 15\).

20 Accepted George Company's \(\$ 12,000\), 3-month, \(9 \%\) note for balance due.

Feb. 18 Sold \(\$ 8,000\) of merchandise to Swaim Company and accepted Swaim's \(\$ 8,000,6\)-month, \(10 \%\) note for the amount due.

Apr. 20 Collected George Company note in full.

30 Received payment in full from Annabelle Company on the amount due.

May 25 Accepted Avery Inc.'s \(\$ 7,000\), 3-month, \(8 \%\) note in settlement of a past-due balance on account.

Aug. 18 Received payment in full from Swaim Company on note due.

25 The Avery Inc. note was dishonored. Avery Inc. is not bankrupt and future payment is anticipated.

Sept. 1 Sold \(\$ 10,000\) of merchandise to Young Company and accepted a \(\$ 10,000\), 6 -month, \(10 \%\) note for the amount due.

\section*{Instructions}

Journalize the transactions.