Presented here are selected transactions related to B. Dylan Corp.

Mar. 1 Sold $20,000 of merchandise to Potter Company, terms 2/10, n/30.

11 Received payment in full from Potter Company for balance due on existing accounts receivable.

12 Accepted Juno Company’s $20,000, 6-month, 12% note for balance due on outstanding account receivable.

13 Made B. Dylan Corp. credit card sales for $13,200.

15 Made Visa credit sales totaling $6,700. A 5% service fee is charged by Visa.

Apr. 11 Sold accounts receivable of $8,000 to Harcot Factor. Harcot Factor assesses a service charge of 2% of the amount of receivables sold.

13 Received collections of $8,200 on B. Dylan Corp. credit card sales.

May 10 Wrote off as uncollectible $16,000 of accounts receivable. (B. Dylan Corp. uses the percentage-of-receivables basis to estimate bad debts.)

June 30 The balance in accounts receivable at the end of the fi rst 6 months is $200,000.

The company estimates that 10% of accounts receivable will become uncollectible.

At June 30, the credit balance in the allowance account prior to adjustment is $3,500. Recorded bad debt expense.

July 16 One of the accounts receivable written off in May pays the amount due, $4,000, in full.

INSTRUCTIONS Prepare the journal entries for the transactions. (Omit cost of goods sold entries.)