ACCOUNTING FOR NOTES RECEIVABLE. Yarnell Electronics sells computer systems to small businesses. During 19x2 Yarnell engaged in the following activities involving notes receivable:

a) On February 1, Yarnell sold a $5,000 system to Ross Company. Ross gave Yarnell a 6-month, 11% note as payment.

b) On March 1, Yarnell sold an $8,000 system to Searfoss, Inc. Searfoss gave Yarnell a 9-month, 10% note as payment.

c) On April 1, Yarnell discounted both the Ross and Searfoss notes with recourse at its bank. The bank used a 12% discount rate.

d) On August 1, Ross defaulted on its note. Yarnell paid its bank the maturity amount of the note and assumed responsibility for collection.

e) On August 15, Yarnell decided that the Ross note was uncollectible and wrote it off.

f) On December 1, Searfoss paid the amount due on its note to the bank.

REQUIRED:

Prepare the entries to record these transactions in Yarnell Electronics’ journal.