Problem 8-07A (Video)

On January 1, 2020, Harter Company had Accounts Receivable $139,000, Notes Receivable $25,000, and Allowance for Doubtful Accounts $13,200. The note receivable is from Willingham Company. It is a 4-month, 9% note dated December 31, 2019. Harter Company 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 n/15.
20		Accepted Sheldon Companys $20,000, 3-month, 8% note for balance due.
Feb. 18		Sold $8,000 of merchandise to Patwary Company and accepted Patwarys $8,000, 6-month, 9% note for the amount due.
Apr. 20		Collected Sheldon Company note in full.
30		Received payment in full from Willingham Company on the amount due.
May 25		Accepted Potter Inc.s $6,000, 3-month, 7% note in settlement of a past-due balance on account.
Aug. 18		Received payment in full from Patwary Company on note due.
25		The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated.
Sept. 1		Sold $12,000 of merchandise to Stanbrough Company and accepted a $12,000, 6-month, 10% note for the amount due.

Journalize the transactions. (Omit cost of goods sold entries.) (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)