More Info 2018 Jul. 1 Sold merchandise inventory to Gray Mart, receiving a $37,000, nine-month, 16% note. Ignore Cost of Goods Sold. 31 Recorded cash sales for the period of $17,000. Ignore Cost of Goods Oct. Sold. Dec. 31 Made an adjusting entry to accrue interest on the Gray Mart note. 31 Made an adjusting entry to record bad debt expense based on an aging of accounts receivable. The aging schedule shows that $14,100 of accounts receivable will not be collected. Prior to this adjustment, the credit balance in Allowance for Bad Debts is $11,200. 2019 Apr. 1 Collected the maturity value of the Gray Mart note. Jun. 23 Sold merchandise inventory to Aglow, Corp., receiving a 60-day. 12% note for $12,000. Ignore Cost of Goods Sold. Aug. 22 Aglow, Corp. dishonored its note at maturity; the business converted the maturity value of the note to an account receivable. Nov. 16 Loaned $23,000 cash to Connely. Inc., receiving a 90-day, 14% note. Dec. 5 Collected in full on account from Aglow, Corp. 31 Accrued the interest on the Connely, Inc. note. Print Done Now record the transactions for 2019. Apr. 1: Collected the maturity value of the Gray Mart note. Date Accounts Debit Credit 2019 Apr. 1 Cash