On January 1, 2001, Elam Company had Accounts Receivable $54,200 and Allowance for Doubtful Accounts $4,700. Elam Company prepares financial statements annually. During the year the following selected transactions occurred:

Jan. 5 Sold $6,000 of merchandise to Garth Brooks Company, terms n/30.

Feb. 2 Accepted a $6,000, 4-month, 12% promissory note from Garth Brooks Company for balance due.

12 Sold $7,800 of merchandise to Gage Company and accepted Gage’s $7,800, 2-month, 10% note for the balance due.

26 Sold $4,000 of merchandise to Mathias Co., terms n/10.

Apr. 5 Accepted a $4,000, 3-month, 8% note from Mathias Co. for balance due.

12 Collected Gage Company note in full.

June 2 Collected Garth Brooks Company note in full.

July 5 Mathias Co. dishonors its note of April 5. It is expected that Mathias will eventually pay the amount owed.

15 Sold $3,000 of merchandise to Tritt Inc. and accepted Tritt’s $3,000, 3-month, 12% note for the amount due.

Oct. 15 The Tritt Inc. note was dishonored. Tritt Inc. is bankrupt, and there is no hope of future settlement.

(e)

Instructions Journalize the transactions.