1. Record the transactions in the general journal.

Sarahs Food Products completed the following selected transactions:

2013

Nov 1 Sold goods to NoExtras Foods, receiving a $300,000, six-month, 5% note.

Ignore cost of goods sold.

Dec. 5 Recorded VISA credit-card sale of $30,000. Visa charges of 4% fee.

Dec 31 Made an adjusting entry to accrue interest on the NoExtras note.

Dec 31 Made an adjusting entry to record bad-debt expense based on an aging of accounts receivable. The aging analysis indicates that $154,000 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance of Doubtful Accounts is $140,000.

2014

May 1 Collected maturity value of the NoExtras note.

May 15 Received a 60-day, 8 percent, $7200 note from Sherwood Market on account.

June 23 Sold merchandise to Meadows Foods, receiving a 30-day, 6% note for $18000. Ignore cost of goods sold.

July 14 Collected the maturity value of the Sherwood Market note.

July 23 Meadows Foods dishonored (failed to pay) its note at maturity; converted the maturity vaue of the note to an account receivable.

Nov 16 Lent $25000 cash to Urban Provisions, receiving a 120- day, 8% note.

Dec 5 Collected in full from Meadows Foods

Dec 31 Accrued the interest on the urban Provisions note.