Prepare journal entries for the following entries for Cayo Hueso Company for the month of December, 20X1. The balance in the Allowance for Doubtful Accounts at the end of November was 40,220.

Date: Transaction:

1 Dec Set up a Petty Cash with an initial balance of $500

2 Dec Purchased 100 units of commodity X at a unit cost of $150 (Terms of sales were Net 30). The product will be resold. This is a new product for Cayo Hueso.

6 Dec Returned 10 defective units of the product purchased om 12/2

10 Dec Sold 30 units of commodity X at a price of $250 per unit (Terms 3/10, Net/30)

12 Dec Accepted a 12% / $9,000 / 120 days note receivable from MaClain INC in settlement of an account receivable. (Also, determine the due date of the note and the maturity value of the note)

14 Dec Received 60% of the $12,000 balance owed on Empires open account receivable and wrote off the remaining balance

19 Dec Received a check from the customer from 12/10 to pay off his account, customer took advantage of discount terms

20 Dec Received a check from Scott Kirby in the amount of $5,700. His account had been written off as uncollectible in the previous year

29 Dec Paid the balance due from the purchase on 12/2

30 Dec Reimbursed Petty Cash, there was $173 in the Petty Cash box. The following summary of Petty Cash receipts follows:

Offices Supplies $30

Delivery Services - $63

Postage - $86

Meeting Expense - $150

31 Dec Wrote off the following accounts as uncollectible: Regency - $4,800; Champion - $3,900; Golden - $2,600; Allman - $1,200

31 Dec Based on an analysis of account receivable, it was estimated that $24,300 will be uncollectible.