On January 1, 2014, Valdez Company had Accounts Receivable $91,000 and Allowreceivable transactions. ance for Doubtful Accounts $8,100. Valdez Company prepares financial statements annu-

(LO 2, 4, 5, 6, 7, 8) ally. During the year, the following selected transactions occurred.

Jan. 5 Sold $8,400 of merchandise to Patrick Company, terms n/30.

Feb. 2 Accepted a $8,400, 4-month, 10% promissory note from Patrick Company for the balance due.

12 Sold $13,500 of merchandise to Marguerite Company and accepted Marguerite’s $13,500, 2-month, 10% 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 Company note in full.

June 2. Collected Patrick Company note in full.

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

15 Sold $14,000 of merchandise to Planke Co. and accepted Planke’s $14,000, 3-month, 12% 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.