1. M. Bhatia Furniture Company has the following accounts receivable in its general ledger at July 31: Accounts Receivable $32,000 and Accounts ReceivableHousehold Credit Co. $2,500 (this nonbank credit card company normally remits amounts within two weeks). During August, the following transactions occurred. Journalize the transactions.

Aug. 1 Added 2% finance charges to $11,000 of Accounts Receivable balances for not paying within the 30 day grace period.

10 Received cash from Household Credit Co. for July 31.

15 Accepted a $15,000, 6% note due on September 30 in settlement of outstanding accounts receivable.

25 Made $2,200 of Household Credit Co. credit card sales less 5% credit card expense.

28 Sold a total of $700 worth of furniture in two transactions to customers using debit cards. The bank charges a $1 fee per transaction.