Problem $8-2$

The Cascot Firm has the following transactions:

Jan. $10$ Sold merchandise to Lovely Firm in the amount of $$795.$ Accepted a $30$ day, $10\%$ note.

Jan. $21$ Accepted a $$1250,30-$day, $10\%$ note as a time extension on payment of a previous sale from the Phackson Firm.

Feb. $2$ Received payment on a previously granted note. The payment was $$718,$ which included $$18$ of interest.

Feb. $9,$ Received payment in full from the Jan. ${10}^{th}$ sale to the Lovely Firm.

Feb. $20$ The Phackson Firm dishonored the Jan ${21}^{st}$ note.

Oct. $30$ Wrote off the Phackson note as uncollectible.

Dec. $1$ Surprisingly received payment in full from the Phackson Firm. The payment equals the original maturity value of the note.

Required:

Assume the Cascot Firm uses the allowance method to write off accounts.

$1.)$ Prepare the general journal entries to record the transactions.