Problem 9-7A

On January 1, 2017, Harter Company had Accounts Receivable $132,800, Notes Receivable $42,000, and Allowance for Doubtful Accounts $31,400. The note receivable is from Willingham Company. It is a 4-month, 9% note dated December 31, 2016. Harter Company prepares financial statements annually at December 31. During the year, the following selected transactions occurred.

Jan. 5Sold $37,200 of merchandise to Sheldon Company, terms n/15. 20Accepted Sheldon Companys $37,200, 3-month, 8% note for balance due.Feb. 18Sold $26,000 of merchandise to Patwary Company and accepted Patwarys $26,000, 6-month, 9% note for the amount due.Apr. 20Collected Sheldon Company note in full. 30Received payment in full from Willingham Company on the amount due. May 25Accepted Potter Inc.s $22,000, 3-month, 9% note in settlement of a past-due balance on account.Aug. 18Received payment in full from Patwary Company on note due. 25The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated. Sept. 1Sold $12,400 of merchandise to Stanbrough Company and accepted a $12,400, 6-month, 10% note for the amount due.

ept. urnalize the transactions. (Credit account titles are automatically indented when amount is ente Date Account Titles and Explanation Debit Credit