$($P$8\mathrm{.}7+)$ On January $1,2025,$ Harter Wholesalers had Accounts Receivable $139,000,$ Notes

Receivable $25,000,$ and Allowance for Doubtful Accounts $($credit$)13,200.$ The note receivable is

from Willingham Company. It is a $4-$month, $9\%$ note dated December $31,2024.$ Harter prepares

financial statements annually at December $31.$ During the year, the following selected transactions

occurred

Jan $5$ Sold $20,000$ of merchandise to Sheldon Company, terms $\frac{n}{15}.$

$20$ Accepted Sheldon's $20,000,3-$month, $8\%$ note for balance due

Feb $18$ Sold $8,000$ of merchandise to Patwary Company and accepted Patwary's $8,000,$

$6-$month, $9\%$ note for the amount due.

Apr $20$ Collected Sheldon note in full.

$30$ Received payment in full from Willingham Company on the amount due.

May $25$ Accepted Potter Inc.$\text{'}$s $6,000,3-$month, $7\%$ note in settlement of a past$-$due balance

on account.

Aug $,18$ Received payment in full from Patwary on note due.

$25$ The Potter Inc. note was dishonored. Potter is bankrupt; future payment is

un$-$anticipated.

Sept. $1$ Sold $12,000$ of merchandise to Stanbrough Company and accepted a $12,000,$

$6-$month, $10\%$ note for the amount due.

Dec. $31$ Value the receivables account assuming bad debts are expected to be $10\%$ of

receivable items

Dec. $31$ Recognize the un$-$collected interest revenue $(365$ days a year, round to the nearest

whole number, $)$

$2026$

Feb $28$ Received principal plus interest on the Stanbrough Company's note.

Mar $1$ Received principal plus interest on the Potter Inc. note which has been written off on

$\frac{2025}{8}\frac{?}{25}.$

Instructions

Journalize the above transactions. $($Omit cost of goods sold entries.$)$