P8-7A On January 1, 2017, Derek Co. had Accounts Receivable 139,000, Notes Receiv- able 30,000, and Allowance for Doubtful Accounts 13,200. The note receivable is from Kaye Noonan Ltd. It is a 4-month, 9% note dated December 31, 2016. Derek prepares financial statements annually at December 31. During the year, the following selected transactions occurred. Jan. 5 Sold 24,000 of merchandise to Zwingle SE, terms n/15. 20 Feb. 18 Apr. 20 30 May 25 Aug. 18 25 Accepted Zwingle's 24,000, 3-month, 6% note for balance due. Sold 8,000 of merchandise to Gerard AG and accepted Gerard's 8,000, 6-month, 7% note for the amount due. Collected Zwingle note in full. Received payment in full from Kaye Noonan on the amount due. Accepted Isabella Ltd.'s 4,000, 3-month, 7% note in settlement of a past-due balance on account. Received payment in full from Gerard on note due. The Isabella note was dishonored. Isabella is not bankrupt; future payment is anticipated. Sept. 1 Sold 10,000 of merchandise to Fernando Co. and accepted a 10,000, 6-month, 8% note for the amount due. Instructions Journalize the transactions.